Photo: James Bombales

Although new construction home sales in the Greater Toronto Area were plentiful throughout October, the supply of single-family properties dwindled to near-historic lows.

Today, the Building Industry and Land Development Association (BILD) reported that the GTA new home market saw strong sales in October, the norm for this time of year. Last month, the region logged a total of 4,280 sales, seven per cent above the 10-year average according to Altus Group, BILD’s official source for new home market intelligence.

“New home markets are returning to more seasonal patterns after the pandemic-related disruptions over the past year-and-a-half,” said Edward Jegg, the analytics team leader of Altus Analytics at Altus Group, in a press release.

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“The new condominium apartment sector remains reasonably well supplied to meet current demand levels but near-historic low inventory of new single-family homes drove prices to record highs in October,” he added.

Condo apartments ​​— including units in low-, medium- and high-rise buildings, stacked townhouses and loft units — accounted for the majority of sales in October with 3,168 transactions. Since Altus Group started tracking market data in 2000, this marks the fourth-highest October on record for condo apartment sales.

New single family homes ​​— including detached, linked, and semi-detached houses and townhouses, but excluding stacked townhouses — had a much smaller portion of October’s sales. Last month, 1,112 new GTA homes were sold, a quantity that dropped 14 per cent below the 10-year market average.

When it came to inventory, condos and single-family homes had very different experiences throughout October.

Photo: birdiegal / Adobe Stock

Remaining condo inventory grew from the previous month up to 11,973 suites as unit openings outpaced sales in October. However, this falls significantly below the 10-year average of 16,000 units. As sales fell behind for single-family homes last month, remaining inventory dropped to a staggering 1,138 units, the second-lowest level of remaining inventory for single-family homes. The lowest level was last recorded in March 2017.

Remaining inventory encompasses units in all stages of development, including units in pre-construction projects, those in developments currently under construction and in completed buildings.

Justin Sherwood, BILD’s SVP of communications and stakeholder relations, noted that a variety of influences are behind the falling levels of new single-family home inventory.

“Several factors are contributing to the shortage of new single-family home supply in the GTA, including a lack of serviced land, supply chain issues and labour shortages,” he said.

“As municipal and regional governments go through their municipal comprehensive reviews and Official Plan processes, they need to ensure they are planning for appropriate housing supply and choice for future residents,” Sherwood added.

In October, the benchmark price of a new GTA condo jumped to $1,052,208, representing a 6.2 per cent increase over the past 12 months. Dwindling inventory pushed new single-family homes to another price record of $1,656,043 in October, up 36.7 per cent year-over-year.

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