GTA sales and prices down, inventory up
May 30 2018
April new home sales and prices slipped lower in the Greater Toronto Area (GTA) as inventory continued to increase, according to the Building Industry and Land Development Association (BILD).
New home sales in April, at 1,722, were the lowest for any April in more than 20 years. Sales of detached and semi-detached homes plunged 65 per cent from April of last year to 502 units, reports Altus Group, the research group for BILD data.
Condominium apartments accounted for 1,225 new home sales, down 65 per cent from April 2017 and down 38 per cent from the 10-year average.
"While home-buying intentions remain strong, a combination of challenges is keeping many interested buyers out of the new home market this spring," said Patricia Arsenault, Altus Group's executive vice-president, research consulting services.
The lower number of sales, combined with a number of new project openings, meant that the unsold inventory increased with total new home inventory at 14,297 units. This included 9,958 condominium apartments and 4,339 single-family homes. This is an improvement of 14.8 per cent over the previous month's 12,457 remaining units, but represents only about five months' worth of inventory.
The benchmark price for new single-family homes decreased in April to $1.15 million, which was down 5 per cent over the last year. The benchmark price for new condominium apartments decreased to $739,965, which was 29.8 per cent above last April.
"It is obvious that government action is having an impact on demand in the new home market," said David Wilkes, BILD President and CEO. "We have 115,000 new residents coming to the GTA every year and we need to be building 55,000 new homes annually to meet their housing needs.”