It looks like the busy spring kept pace through May 2019, as new home sales increased yet again as inventory fell slightly.
In May 2019, there were 4,794 new home sales in the Greater Toronto Area, according to Altus Group, the Building Industry and Land Development Association’s trusted source for new home market intelligence. This total is 94% higher than May 2018 and 27% above the 10-year average.
Of the new home sales in May, 1,004 of them were single-family homes, which is a whopping 211% year-over-year increase, but it’s still 32% lower than the 10-year average. May 2019 was the seventh consecutive month of year-over-year increases in sales.
“It was the highest number of total new home sales for May since 2002,” says Patricia Arsenault, Altus Group’s Executive Vice President, Data Solutions. “New condo apartment sales were brisk among the near-record number of units launched in April. At the same time, new single-family home sales broke the 1,000-unit threshold for the first time in two years.”
The new single-family home market is doing well, but it was the new condo market that really heated up this spring. New condo sales for the month increased 76% year-over-year with 3,790 sales. This is also 64% above the 10-year average!
While sales increased, inventory fell slightly. As of the end of May, there were 12,537 new condo units and 4,574 new single-family homes available across the GTA. These obviously aren’t the worst supply numbers the GTA has seen, but it’s not the best either.
“The sales numbers of the last few months show that the underlying demand for new homes, both condo apartments and single-family homes, was there all along,” says David Wilkes, BILD President & CEO. “Our challenge as a region is to continue to develop innovative policy solutions that will allow us to build enough housing supply to meet that demand.”
The average price of a new condo increased 2.8% year-over-year to $779,687, while the average price of a new single-family home fell 3% to $1,109,501. It’s interesting that the average price of single-family homes keeps falling, but remains out of reach for many buyers in the GTA, which is part of what’s driving up new condo prices.