The Building Industry and Land Development Association released its monthly results for the Greater Toronto Area’s new home market, reporting that the number of sales and openings are back on track for November 2018.
Following a relatively strong October, there were 2,823 new home sales in the GTA in November 2018, according to Altus Group, BILD’s trusted source for new home market intelligence.
A whopping 2,454 sales were new condo units, and while this may seem high, it’s actually 24% lower than a year ago, but only 6% below the 10-year average. That leaves us with 369 new single-family sales, which is 8% higher than November 2017 but a staggering 71% below the 10-year average.
“The condominium apartment market in the GTA is finishing off the year on a stronger note than it started,” says Patricia Arsenault, Altus Group’s Executive Vice President, Data Solutions. “Both builders and buyers have re-engaged in stronger numbers in recent months, signalling that the downturn that followed record activity last year may be coming to an end.”
Inventory is sitting at 16,797 units as of the end of last month, 11,254 of which are condo units and 5,543 are single-family homes. This is much higher than the record lows from last year, but BILD says the GTA is still struggling to meet demand.
“The time for talk is done and our region needs action now to ensure we build the more than 50,000 new homes needed annually to support the GTA’s growing population,” says BILD President & CEO, David Wilkes. “Our industry is encouraged by the provincial government’s commitment to unlocking supply. We will continue to call on municipal governments to expedite approvals of new developments, and on the federal government to undo the negative effects of the outdated stress test on consumers’ ability to purchase homes.”
The average price of a new condo in the GTA in November 2018 was $786,602, which is 11.9% higher than the same period last year. The average price of a single-family home fell 5.9% year-over-year, but remains unaffordable for most at $1,150,823.