2017: Over 120 new homes sold each day in the GTA
January 31, 2018
Sales of new homes in the Greater Toronto Area (GTA) averaged more than 120 a day, seven days a week during 2017 as sales hit the fourth-highest level on record.
In dollar volume that represents an approximate average of $500 million a week.
Altus Group reports new condominiums and stacked townhouses smashed the previous annual record set in 2016 with just over 36,400 units sold in 2017. Conversely, new single-family home sales plunged 58 per cent, with declines across all product types and in all five regions of the GTA.
With just over 7,700 single-family home sales, this was the lowest number yet recorded by Altus Group.
“Altus Group data shows that home buying intentions remain strong in the GTA, despite the many roadblocks that have been put in potential buyers’ way,” said Matthew Boukall, senior director at Altus Group. He said he was referring to recent rapid price escalation, rising interest rates, tighter lending criteria and additional stress testing.
As the year ended, new condominium inventory represented less than three months of supply, based on the monthly pace of sales over the previous 12 months. Average asking prices for available new condominium apartments increased rapidly with the December average at more than $716,000—up 41 per cent compared to December 2016.
Inventory levels of new single-family homes have risen from their low point in April 2017, although there were still relatively few available to purchase during 2017. Asking prices for new single-family homes averaged just over $1.2 million at the end of 2017, 23 per cent ahead of a year earlier, although most of the increase occurred prior to Spring 2017.
The buoyancy in the GTA real estate sector in 2017 is poised to continue this year according to Altus Group experts.
New condominium apartment sales are expected to remain elevated in 2018, though may remain below the pace of last year. While investor interest continues strong, some end-user buyers are being priced out of this segment as well.
“Some modest increase in new single-family sales is possible, however sales in this segment will continue to be challenged by lack of available product, in particular options that are affordable to a broader range of buyers,” Altus Group noted.
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