Photo: James Bombales
GTA home sales were weak across the board in January, and the new construction market was no exception.
Sales of new single-family homes were at their lowest level since 2000, according to data from Altus Group, released by the Building Industry and Land Development Association (BILD).
“The January data continues a trend we have seen in the GTA,” writes BILD president and CEO David Wilkes, in a statement. “Our industry wants to meet consumer demand in terms of the mix and type of homes available, but we are constrained by government policy. Affordability and the lack of supply of single-family housing remain a challenge.”
Read on for 7 stats that will explain the ins-and-outs of January’s new home sales plunge:
1. Single-family homes made up only 365 units out of the 1,251 new homes sold in January, while new condo units made up 70.8 per cent of new home sales last month.
2. That’s part of January’s GTA sales drop, which saw sales decline 22 per cent year-over-year, from 5,155 transactions in January 2017 to 4,019 last month.
3. Meanwhile, Altus Group executive VP Patricia Arsenault writes that new condo sales were “in line with typical levels for this time of year.” She attributes the demand to end users looking for more affordable homes, and investors looking for rental properties to put on the market.
4. The benchmark price for a new single-family home was $1,229,454 in January, up 19.6 per cent year-over-year. The benchmark price of a new condo jumped a whopping 40.8 per cent to $714,430.
5. Supply increased from 11,397 to 11,750 units month-over-month in January, still well below what is considered a healthy level.
6. Supply of new housing is typically measured by the number of new homes available for purchase at the end of the month. A healthy new home market should have nine to 12 months’ worth of inventory — currently, inventory levels sit at three to four months.
7. “The GTA is expected to grow to 9.7 million people by 2041,” writes Wilkes. “How are we going to house them? All levels of government and the building industry have a role to play in increasing housing supply and we need to work together to simplify approval processes, update zoning by-laws and service developable land so we can bring more homes to market.”