March shows third month of record lows for new home sales, presenting unique buying opportunity for new home purchasers
Toronto, April 23, 2024 (GLOBE NEWSWIRE) -- *Greater Toronto Area, April 23, 2024* – GTA new home sales in March extended the very slow start to 2024, with all three months of Q1 having set record lows for new home sales, the Building Industry and Land Development Association (BILD) announced today.
There were 1,125 new home sales in March, which was down 16 per cent from March 2023 and 66 per cent below the 10-year average, according to Altus Group*, BILD’s official source for new home market intelligence.
“GTA new homes sales for March came in at a record low as buyers remained on the sidelines,” said Edward Jegg, Research Manager with Altus Group. “Builders have responded with fewer new launches until sales begin to recover.”
Condominium apartments, including units in low, medium and high-rise buildings, stacked townhouses and loft units, accounted for 601 units sold in March, down 38 per cent from March 2023 and 73 per cent below the 10-year average.
There were 524 single-family home sales in March, up 38 per cent from March 2023 and 51 per cent below the 10-year average. Single-family homes include detached, linked and semi-detached houses and townhouses (excluding stacked townhouses).
Total new home remaining inventory decreased compared to the previous month, to 19,508 units. It included 16,318 condominium apartment units and 3,190 single-family dwellings. This represents a combined inventory level of 13.5 months, based on average sales for the last 12 months. This remains one of the highest inventory levels for new homes seen in the last decade and, when combined with the decrease of 16 to 18 per cent in the benchmark price since the peak in 2022, this provides a unique buying opportunity for prospective new home buyers. With ample choice due to high inventory levels, purchasing a pre-construction home today will allow buyers to lock in a price now, while benefiting from lower interest rates that may be on the horizon, when they close.
“While the current situation is very beneficial for prospective new home buyers, it is a period of increased jeopardy for builders and developers that is becoming more critical with every passing day,” said Justin Sherwood, SVP Communications & Stakeholder Relations at BILD. “At the very time when builders should be ramping up production, they cannot due to a combination of high interest rates, elevated construction costs and slow demand. This is becoming a very concerning situation and persistence of these market conditions risks future housing supply.”
Benchmark prices increased in March for single-family homes and for condominium apartments compared to the previous month. The benchmark price for new condominium apartments was 1,054,906, which was down six per cent over the last 12 months and 16 per cent from the 2022 peak. The benchmark price for new single-family homes was $1,594,951, which was down 11 per cent over the last 12 months and 18 per cent since the 2022 peak.
With 1,200 member companies, BILD is the voice of the home building, residential and non-residential land development and professional renovation industries in the Greater Toronto Area. The building and renovation industry provides 256,000 jobs in the region and $39.3 billion in investment value. BILD is affiliated with the Ontario and Canadian Home Builders’ Associations.
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For additional information or to schedule an interview, contact Janis McCulloch at jmcculloch@bildgta.ca or 416-617-7994.
*Altus Group should be credited as BILD’s official source of new home market intelligence.
*Attachments*
· March shows third month of record lows for new home sales, presenting unique buying opportunity for new home purchasers
· Altus Data Solutions BILD media backgrounder March 2024
CONTACT: Janis McCulloch
Building Industry and Land Development Association (BILD)
416-617-7994
jmcculloch@bildgta.ca