Compared to last year, 2019 is proving to be a strong one for new home sales in the Greater Toronto Area, according to a new report from the Building Industry and Land Development Association.
In June 2019, there were 932 new single-family home sales in the GTA, which is a huge year-over-year increase of 127%, but still 30% below the 10-year average, according to Altus Group data, BILD’s trusted source for new home market intelligence. There were 2,420 new condo sales in June 2019, up 14% from the same period a year ago, and just 5% under the 10-year average.
“Sales of new condominium apartment units returned to a more sustainable, but still solid, pace in June, after exceptional performances in both April and May,” says Patricia Arsenault, Altus Group’s Executive Vice President, Data Solutions.
The average price of a new condo in the GTA last month was $804,591, up 3.9% from a year ago. This is a pretty big jump from May 2019 when the average price was just under $780,000, but Altus Group points out that there was a lot of high-end product released in the condo market in June, so that drove the average up.
The average price of a new single-family home in the GTA fell 3%, but remains unaffordable for many, finishing the month at $1,098,948. This price drop isn’t huge compared to May 2019’s average price of just over $1.1 million. As the price of a new condo increases around the same rate as the price for a new single-family home decreases, we wonder when a shift in price growth will occur.
With a few projects opening, available inventory increased slightly with 14,377 new condos and 4,685 new single-family homes available across the GTA as of the end of June. This is the type of activity the market needs; strong sales and healthy supply growth.
“It is encouraging to see the pace of the new home market in the GTA so far this year,” says David Wilkes, BILD President & CEO. “We hope that with the policy changes introduced by the provincial government with Bill 108, and the recent steps taken by Toronto City Council to expand housing options in Toronto, we will see more transit-oriented housing built faster, at a price that will allow more potential home buyers to come in from the sidelines.”
In the first half of the year, there were 17,127 new homes sold, which is 43% higher than the same period a year ago, but still 14% below the 10-year average. So, while the market is looking good, there’s still some room for improvement!