The Greater Toronto Area housing market experienced a significant downturn in July 2024, with new home sales reaching an all-time low for the month, according to the Building Industry and Land Development Association (BILD).
BILD reported a mere 654 new home sales, marking a 48% decrease from July 2023 and a staggering 70% drop below the 10-year average.
Condominium apartments, including various housing types such as low, medium, and high-rise buildings, stacked townhouses, and loft units, saw only 287 units sold. This represents a 67% decline from the previous year and an 81% decrease compared to the 10-year average. Single-family homes fared slightly better, with 367 sales, down 1% from July 2023 but still 42% below the 10-year average.
The total new home remaining inventory increased to 21,660 units, with 17,445 condominium apartments and 4,215 single-family dwellings. This inventory level represents 15 months of supply based on average sales for the past year, indicating a continued trend of high inventory levels since autumn 2023.
Edward Jegg, Research Manager at Altus Group, BILD’s official source for new home market intelligence, attributed the sales slump to buyers’ reluctance to enter the market. He suggested that expected interest rate decreases and elevated inventories could present opportunities once consumer confidence improves.
Benchmark prices for both housing types decreased compared to the previous year. New condominium apartments saw a 6% drop to $1,020,179, while single-family homes experienced a 5% decline to $1,585,881.
Justin Sherwood, SVP Communications & Stakeholder Relations at BILD, called for urgent government action.
“Changes in interest rates will not solve what is an ongoing structural problem, particularly evident in the GTA,” he said. “The cost to build, driven by excessive government fees and taxes, is simply too high. Without immediate action by government, new construction activity will continue to slow and the GTA’s housing shortage will reach unprecedented levels over the next few years.”
Information for this story was found via BILD, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
