Fresh numbers from Altus Group and the Building Industry and Land Development Association (BILD) revealed that GTA’s new home market saw a relatively cool month in March amid a noticeable decline.
The metropolitan area saw a total of 1,960 total new home sales in March, including 1,649 condominium apartments sold in low, medium, and high-rise buildings, stacked townhouses, and loft units. This represented a dramatic 67% year-over-year decline, and 21% lower than the 10-year average.
Last month’s condo sales were below underlying demand levels, according to Altus Group executive vice-president (research consulting services) Patricia Arsenault.
“Some of the demand that might have normally occurred this year was brought forward last year, helping to set a record year for condo apartment sales in 2017,” Arsenault said. “After an adjustment period, we expect the monthly pace of condo apartment sales to improve.”
Meanwhile, new single-family home sales went down by 77% from March 2017 and 79% from the 10-year average.
Read more: Was Toronto’s residential property market ever affordable?
BILD president and CEO David Wilkes said that sales numbers for 2018 so far are reflective of more normalized activity after last year’s exceptional new home sales levels. 2017 proved to be the 4th strongest year for new home sales in the GTA since Altus Group started tracking in 2000.
“This year, the cumulative effects of government measures to cool the housing market are likely keeping many potential buyers out of the housing market,” Wilkes stated. “Many may simply be taking a wait-and-see approach.”
Thinner supply kept prices high, the BILD report added. Total new home remaining inventory in the GTA as of March stood at 12,457 units. Of these, 8,756 were condominium apartments and 3,701 were single family homes.
The benchmark price for new single-family homes last month was 7.4% above the same time last year ($1,207,832). The benchmark price for new condominium apartments spiked upward by 39.4% year-over-year on March ($742,801).
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate