The number of new homes sold in the Toronto region so far this year has surpassed the market’s 10-year average, according to new findings released in a report today by the Building Industry and Land Development Association (BILD).
The latest data published by Altus Group, BILD’s official source of new home market intelligence, shows that a total of 24,060 new homes were sold in the Greater Toronto Area throughout the first six months of 2021. This sets the quantity of year-to-date new home sales 25 percent above the region’s 10-year average.
“The demand for new homes remains impressive, in particular given the challenges homebuyers have faced in the past year,” said Edward Jegg, Analytics Team Leader of Data Solutions at Altus Group, in the report.
“New product brought to the market has not kept pace with sales, and as a result, relatively low inventories of product available to purchase continue to exert pressure on prices,” he added.
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In June alone, 3,860 new properties were sold, four percent above the 10-year average. Condominium apartments — which includes units in low-, medium- and high-rise buildings, stacked townhouses and loft units — accounted for the majority of sales, with 2,775 suites sold last month. The number of condo apartments sold in June was 13 percent above the 10-year average. The benchmark price for a new construction condo hit $1,058,366 in June, an increase of 5.9 percent over the last 12 months.
Single-family homes sales covered the remaining 1,085 new properties that were sold last month, which was 14 percent below the 10-year average. New construction single-family properties include detached, linked and semi-detached houses and townhouses, but exclude stacked townhouses. Although sales were below the decade’s average, single-family homes recorded a benchmark price of $1,405,597 in June, up 23.1 percent annually.
The majority of new condo apartments were sold in Toronto last month, at 867 units, and the highest number of single-family home sales occurred in York Region, at 426 sales. In both categories, York Region reported the most sales in June, with 919 homes sold.
The regions’ remaining home inventory totaled 11,451 units in June, accounting for suites in pre-construction, under construction and recently completed phases of development. In May, new home inventory in the Toronto region was reported to be 12,555 units, about 3.3 months worth of supply based on the current pace of sales.
“The new home market has been a key driver of economic activity through the pandemic, providing jobs and homes for the residents of the GTA,” said Dave Wilkes, BILD’s President and CEO, in June’s report.
“As we look forward, we will be monitoring the continuing strength and speed of economic recovery, the return of typical immigration levels and the possible rise in interest rates and their impact on the new home construction,” he added.