The Building Industry and Land Development Association released its new home market results for October 2018, reporting an increase in activity in the Greater Toronto Area.
Last month, there were 2,805 new condo sales, which is 44% lower than October 2017, but only 1% under the 10-year average, according to Altus Group, BILD’s trusted resource for new home market intelligence. With 491 new single-family sales, activity was roughly the same as last year, but a whopping 64% below the 10-year average.
“The pickup in interest from builders and homebuyers that started to emerge in the GTA new home market in September gained momentum in October,” says Patricia Arsenault, Altus Group’s Executive Vice President, Data Solutions. “October was the best month we’ve seen this year not only in terms of sales—for both single-family homes and condominium apartments—but also new project openings. And for both sales and new openings, the increases from last month were stronger than the typical seasonal pattern.”
BILD and other industry pundits have been saying the GTA needs more new home supply. Well, October 2018 provided. There were 21 new condo openings and 14 new single-family community openings, bringing inventory up to 16,283 units (10,982 condo units and 5,301 single-family homes).
“It’s clear that when we are able to bring on more supply and give new homebuyers more product to choose from, they get excited and motivated about making that choice,” says David Wilkes, BILD President & CEO. “That’s why we are especially heartened by the new provincial government’s commitment to increasing housing supply through its Housing Supply Action Plan.”
The average price of a new condo unit in the GTA increased 14.5% year-over-year to $775,537. And the average price of a new single-family home fell 8.4% year-over-year but remains high at $1,115,284, which is unaffordable for most move-up buyers and families. With homes from 2016 and 2017 sales closing soon, the slower season, and more supply hitting the market, we could see single-family prices continue to moderate in the new year.