The GTA new home market saw its highest sales in more than 20 years in November, powered by buyers scrambling to get into the relative affordability of condos. Condo sales saw their second strongest month since tracking began in 2000, BILD said, while single-family homes slumped 33 per cent below their 10-year average on affordability concerns.
Total November new home sales of 5,042 were 29 per cent above the 10-year average
Condominium apartments, including units in low, medium, and high-rise buildings, stacked townhouses and loft units, accounted for 4,274 units sold in November, 56 per cent above the 10-year average.
Sales of new single-family homes, including detached, linked, and semi-detached houses and townhouses (excluding stacked townhouses), accounted for 768 units sold in November, which was 33 per cent below the 10-year average due to declining affordability.s
Inventory decreases
As condominium apartment unit sales outpaced openings in November, remaining inventory decreased compared to the previous month, to 10,200 units. (Remaining inventory includes units in pre-construction projects, in projects currently under construction, and in completed buildings.) This was still well below the 10-year average of 16,000 units and current inventory represents less than four months’ supply.
The benchmark price for condominium apartments increased to $1,082,713 in November compared to the previous month, up 7.8 per cent over the last 12 months.
With new single-family home openings low, remaining inventory for single-family homes saw a very slight increase in November compared to the previous month, to 1,188 units. Inventory for single-family homes remains close to historic lows. The tight inventory contributed to another record in the benchmark price for new single-family homes, of $1,679,941 in November, which was up 33 per cent over the last 12 months.
The data was compiled by Altus Group.
“Housing affordability driven by lack of supply has become a critical issue in the GTA with broad societal implications,” said Justin Sherwood, BILD’s SVP. “Housing affordability will be a significant issue in the 2022 provincial and municipal elections. The current supply challenge is a man-made problem and BILD encourages candidates to bring forward meaningful supply side solutions in their platforms.”
