Ontario Construction News staff writer
GTA new home sales in July recorded an all-time low, with 654 sales, down 48% from July 2023 and 70% below the 10-year average, according to BILD.
According to the report – which was released by the Building Industry and Land Development Association (BILD) earlier this week – new home sales in the GTA plunged 48% in July compared to the same month last year and 70% when compared to the 10-year average. The numbers also revealed that new home inventory levels rose to a 15-month high of 21,660 units in July.
“GTA new homes sales in July 2024 sank to another record monthly low as buyers remained unwilling to leave the sidelines,” Edward Jegg, research manager with Altus Group said in a statement on Wednesday (Aug. 28). “Further expected decreases in interest rates in the coming months, along with elevated inventories, means there will be plenty of opportunities once consumer confidence improves.”
The report added that condominium sales dropped 67% in July compared to a year ago and 81% when compared to the 10-year average. Benchmark prices decreased in July for both single-family homes and for condominium apartments compared to the previous year. The benchmark price for new condominium apartments was $1,020,179, which was down six per cent over the last 12 months. The benchmark price for new single-family homes was $1,585,881, which was down five per cent over the last 12 months.
“The numbers present a clear picture and signal the need for an urgent response from government,” said Justin Sherwood, senior vice-president, communications and stakeholder relations at BILD.
“Changes in interest rates will not solve what is an ongoing structural problem, particularly evident in the GTA. The cost to build, driven by excessive government fees and taxes, is simply too high. Without immediate action by government, new construction activity will continue to slow and the GTA’s housing shortage will reach unprecedented levels over the next few years.”