July saw better-than-usual sales of new homes in the Greater Toronto Area according to a new report from the Building Industry and Land Development Association (BILD). Figures from the Altus Group show that sales of new single-family homes totaled 566, which was 136% higher than a year ago, although missing the 10-year average by 29%.
Condo sales soared to 42% above the 10-year average with 2,297 units sold, a 22% increase from July 2018. “Typically, buyers take a bit of a vacation from the new condo apartment market in July. This year was no different, although the decline in sales was less pronounced than usual, resulting in the second strongest July on record,” said Patricia Arsenault, Altus Group’s Executive Vice President, Data Solutions. “While few new projects launched in July, sales at projects opened in June were brisk.”
Total new home sales in the first seven months of 2019, at 20,268 units sold, are up 45% year-over-year but 9% below the ten-year average. Inventory decreased to 12,873 for condos and 4,409 for single-family homes.
Prices diverge
Benchmark prices for newly constructed condos and single-family homes in the GTA continued to diverge in July. The benchmark price of new condominium apartments increased month-over-month to $838,824, up 8.3% over the last 12 months; while the benchmark price of new single-family homes decreased slightly from June to $1,091,727, down 4.5% over the last 12 months.
“The price gap between single-family homes and condos continues to shrink, leaving new home buyers with a lack of choice,” said David Wilkes, BILD President & CEO. “We must provide more ‘missing middle’ type development that can support transit in established neighbourhoods. More ‘gentle density’ housing in the form of mid-rise buildings, condos with street level retail, and stacked townhouses is needed to give consumers more choice.”
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