Photo: James Bombales
For months it seemed like the GTA new construction market had managed to dodge the 2018 housing slow down, but that might be starting to change.
Total new home sales were down 44 per cent year-over-year and down 55 per cent from the 10-year average in July, according to data from the Altus Group, released today by the Building Industry and Land Development Association (BILD).
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Condos, which have typically performed well, saw sales drop 52 per cent year-over-year and to 40 per cent below the 10-year average. Meanwhile, sales of new single-family homes were up 85 per cent from last July, but still 77 per cent below the 10-year average.
“New home sales in the GTA typically take a breather in the summer months compared to the spring,” writes Altus Group executive vice-president, data solutions Patricia Arsenault, in a statement. “This July was no exception, although minimal new project launches in July, along with declining affordability of new condominium apartments due to recent price escalation, amplified the June-to-July decline in sales somewhat this year.”
Only two new construction projects opened in July, leaving remaining new home inventory at just 14,784 units. According to BILD president and CEO David Wilkes, the current shortage of condo inventory should lift in the coming months.
“We are still seeing a shortfall in condo apartment inventory,” he writes, in a statement. “Given the current pace of sales, we should have nine to twelve months’ worth of inventory, but we only have five. We expect that more condo apartment product will become available in the fall.”
The benchmark price of a new condo was $774,759, up 16.5 per cent from last July, but virtually unchanged month-over-month. The benchmark price of new single-family homes was $1,142,574, down 13.2 per cent from last July and 0.85 per cent above last month.