GTA new home market busy in September

Ontario Construction News staff writer

September was another busy month for the Greater Toronto Area (GTA) new home market, the Building Industry and Land Development Association (BILD) says..

Sales of new single-family homes, including detached, linked, and semi-detached houses and townhouses (excluding stacked townhouses), with 2,334 units sold, were up 168 per cent from last September and 110 per cent above the 10-year average, according to Altus Group, BILD’s  source for new home market intelligence, It was the strongest September for new single-family home sales since 2003, BILD said in an Oct. 28 statement.

Condominium apartments, including units in low, medium and high-rise buildings, stacked townhouses and loft units, accounted for 2,603 new home sales, an increase of 15 per cent from September 2019 and 33 per cent above the 10-year average.

“The level of market demand for new housing has remained strong, with year-to-date new home sales up from last year,” said Ryan Wyse, Altus Group’s manager, Analytics, Data Solutions. “The single-family home market was very active in September, with particularly strong activity seen at newly launched detached and townhouse communities. To date this year, demand for new single-family homes has outpaced supply.”

Total new home remaining inventory in September was 14,403 units, changing little from the previous month as September’s new supply was quickly absorbed in the market. New home remaining inventory includes units in preconstruction projects, in projects currently under construction, and in completed buildings.

The benchmark price for both single-family homes and condominium apartments rose in September. The benchmark price for new condo apartments in September was $1,016,550, which was an increase of 20.9 per cent over the last 12 months, and the benchmark price for new single-family homes was $1,179,249, which was up 9.1 per cent over the last 12 months.

“While demand for both high-rise and low-rise homes was strong in September, the clear insight of the last few months is how quickly consumer demand can evolve,” BILD president and CEO David Wilkes said in a statement.

“We need to make sure that policy and regulations are flexible and adaptable enough to accommodate market demands, from increased demand for low-rise homes to condo units that reflect current market conditions both in size and built form. Recent changes made by the provincial government bring an increased market focus, but translating that to the market at the municipal level will take time. This is why BILD is encouraging municipalities to start now with the implementation of these new provincial directions.”

September New Home Sales by Municipality: **

Source: Altus Group