New home market sees steady prices, slower sales in July

GREATER TORONTO, Aug. 22, 2018 /CNW/ - Sales of new homes in the GTA slowed down in July while prices held steady, the Building Industry and Land Development Association (BILD) announced today.

Total July new home sales of 1,071 units were down 44 per cent from last July and down 55 per cent from the 10-year average, according to Altus Group*, BILD's official source for new home market intelligence. Sales of new condominium apartments in low, medium and high-rise buildings, stacked townhouses and loft units, at 855 units sold, were down 52 per cent from July 2017 and down 40 per cent from the 10-year average.

Sales of new single-family homes, including detached, linked and semi-detached houses and townhouses (excluding stacked townhouses), at 216 units sold, were up 85 per cent from last July—a month that saw the lowest single-family home sales in decades, with 117 units sold—but still 77 per cent below the 10-year average.

The benchmark price of new condominium apartments was $774,759, up 16.5 per cent from last July, but virtually unchanged from last month. The benchmark price of new single-family homes was $1,142,574, down 13.2 per cent from last July and just 0.85 per cent above last month.

"New home sales in the GTA typically take a breather in the summer months compared to the spring," explained Patricia Arsenault, Altus Group's Executive Vice-President, Data Solutions. "This July was no exception, although minimal new project launches in July, along with declining affordability of new condominium apartments due to recent price escalation, amplified the June-to-July decline in sales somewhat this year."

With only two projects opening in July, the total remaining new home inventory decreased to 14,784 units, comprised of 9,931 condo apartment units and 4,853 single-family units. Remaining inventory includes units in preconstruction projects, in projects currently under construction, and in completed buildings.

"We are still seeing a shortfall in condo apartment inventory," said David Wilkes, BILD President & CEO. "Given the current pace of sales, we should have nine to twelve months' worth of inventory, but we only have five. We expect that more condo apartment product will become available in the fall."

Mr. Wilkes added that affordability remains an issue for many buyers. "The prices of new homes are affected by, among other factors, the fees, taxes and charges added by all levels of government," he said. "Municipalities have the most direct influence over affordability and supply of new housing, so leading up to the Oct. 22 municipal elections, we are inviting people to send an email to their local candidates, asking them to make housing a priority. Start by visiting www.buildforgrowth.ca."

July New Home Sales by Municipality**:

July 2018	Condominium Apartments			Single-family			Total
Region	2018	2017	2016	2018	2017	2016	2018	2017	2016
Durham	9	27	162	44	60	376	53	87	538
Halton	40	18	76	21	13	45	61	31	121
Peel	147	148	180	88	0	101	235	148	281
Toronto	568	1,134	1,645	1	9	114	569	1,143	1,759
York	91	471	187	62	35	286	153	506	473
GTA	855	1,798	2,250	216	117	922	1,071	1,915	3,172

Source: Altus Group

With 1,500 members, BILD is the voice of the home building, land development and professional renovation industry in the Greater Toronto Area. BILD is proudly affiliated with the Ontario and Canadian Home Builders' Associations.

*Altus Group should be credited as BILD's official source of new home market intelligence.
**Historical data are subject to revisions.

SOURCE Building Industry and Land Development Association

or to schedule an interview, contact John Provenzano, BILD Communications and Marketing Manager, at [email protected], [phone].