Ontario Construction News staff writer
New home sales in the Greater Toronto Area (GTA) remained low in October 2024, with only 765 units sold, according to the Building Industry and Land Development Association (BILD). This figure represents a 60% decrease compared to October 2023 and a 77% drop below the 10-year average for the month. The new condominium apartment sector was particularly hard hit, with only 210 units sold in October.
“The GTA new home market was practically frozen in October,” said Edward Jegg, Research Manager at Altus Group, BILD’s official source for new home market intelligence. “However, conditions are starting to align with inflation in check, resale activity surging, interest rates falling and upcoming changes to mortgage rules all pointing to buyers jumping back into the new home market in the coming months.”
Condominium apartment sales in October totaled 210 units, down 84% year-over-year and 91% below the 10-year average.
“The new condominium apartment sector has been particularly hard hit by the current market conditions,” said Jegg. “This is due to a number of factors, including rising construction costs, escalating government fees, taxes, and charges, which have made it increasingly difficult to deliver new homes at a price point the market can absorb.”
Despite the low sales figures, total new home remaining inventory increased slightly compared to the previous month, to 22,299 units. This includes 17,682 condominium apartments and 4,617 single-family homes. This inventory level represents 14.4 months of average sales over the last year.
“The longer that sales remain low, the more it is anticipated that available housing supply in the 2027-2029 time period will suffer,” said Justin Sherwood, senior vice-president, Communications, Research and Stakeholder Relations at BILD. “This will invariably lead to price appreciation, less choice and mix in the future.”
