November saw new home sales across the Toronto region stick to trends established in the second half of the year.
Single-family home sales continued to significantly outperform 2019 totals, with 1,914 units sold for an annual increase of 68 percent, according to data published today by the Building Industry and Land Development Association (BILD) and Altus Group. November’s total was also 58 percent above the 10-year sales average for the month.
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Similar to recent months, the Toronto region’s new condo market recorded a considerable decline in buyer activity. There were 1,836 new condos sold last month, down 49 percent from November 2019 and 32 percent below the 10-year average.
Of the five regions within the GTA tracked by BILD and Altus, only Halton saw an annual increase in new condos sold, with 448 sales recorded last month compared to 117 in November 2019. Halton, Durham and York all saw significant increases in single-family home sales while Peel and the City of Toronto posted declines.
“While single-family sales continued to see strong demand, we saw fewer than typical new condominium apartment openings in November, which resulted in lower overall sales for the month,” said Altus Group’s Ryan Wyse.
“The pandemic has disrupted the usual seasonality in the market and we are likely seeing builders take a wait-and-see approach with respect to future launches, with an eye on the spring market,” he added.
While sales continued to diverge, prices for both new condos and single-family homes posted big jumps in November. The benchmark price for a new single-family home in the Toronto region was $1,267,248, up nearly 16 percent over the previous year. Meantime, new condos recorded close to an 18 percent increase, rising to $1,003,801.
BILD CEO David Wilkes voiced optimism for the return of more typical home buying patterns at some point next year when the pandemic’s effects subside.
“It was a busy summer and fall in the GTA new home market, as the pent-up demand from our locked-down spring worked its way through the system,” said Wilkes.
“With the arrival of winter, we are entering what is typically a quiet time in the market. We are optimistic that the overall new home market in the GTA will demonstrate its strength as the region emerges from the pandemic.”