April sees 2024 trend continue with record lows for new

Toronto, May 28, 2024 (GLOBE NEWSWIRE) -- Greater Toronto Area, May 28, 2024 – GTA new home sales in April continued to extend its slow first quarter of 2024, with year-to-date sales sitting at a record breaking low and new home sales in April 2024 being the lowest in recent memory – second only the pandemic-impacted April 2020 level, the Building Industry and Land Development Association (BILD) announced today.

There were 1,105 new home sales in April, which was down 56 per cent from April 2023 and 65% per cent below the 10-year average, according to Altus Group*, BILD’s official source for new home market intelligence.

“New home sales across the GTA remained glacial in April 2024,” said Edward Jegg, Research Manager with Altus Group. “With months of inventory at nearly a 15-year high and prices down year-over-year, there are plenty of opportunities for those looking to buy a new home ahead of what is anticipated to be an increased demand once interest rates soften and buyers currently sitting on the sidelines return to the market.”

Condominium apartments, including units in low, medium and high-rise buildings, stacked townhouses and loft units, accounted for 518 units sold in April, down 64 per cent from April 2023 and 75 per cent below the 10-year average.

There were 587 single-family home sales in April, down 45 per cent from April 2023 and 48 per cent below the 10-year average. Single-family homes include detached, linked and semi-detached houses and townhouses (excluding stacked townhouses).

Total new home remaining inventory increased compared to the previous month, to 20,092 units. This includes 16,478 condominium apartment units and 3,614 single-family dwellings. This represents a combined inventory level of 15 months, based on average sales for the last 12 months. This continues to be one of the highest inventory levels for new homes seen in the last decade

“The current situation with high interest rates and slow preconstruction levels is creating a critical situation for the future housing supply of the GTA and demands the attention of all levels of government to create the economic and investment climate to balance the market over the next several years,” said Justin Sherwood, SVP Communications & Stakeholder Relations at BILD. “Lower pre-construction sales means lower housing starts in the future, lower starts means less housing supply – precisely at the time when we anticipate to see a resurgence of demand. Land prices, input and construction costs being what they are, taking steps to increase density and speed up approvals are the most readily available levers in the governments’ wheel houses. Without action we are looking at an acute shortage of supply in two to three years.”

Benchmark prices increased in April for single-family homes and for condominium apartments compared to the previous month. The benchmark price for new condominium apartments was 1,056,786, which was down four per cent over the last 12 months. The benchmark price for new single-family homes was $1,617,896 which was down nine per cent over the last 12 months.

With 1,200 member companies, BILD is the voice of the home building, residential and non-residential land development and professional renovation industries in the Greater Toronto Area. The building and renovation industry provides 256,000 jobs in the region and $39.3 billion in investment value. BILD is affiliated with the Ontario and Canadian Home Builders’ Associations.

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For additional information or to schedule an interview, contact Janis McCulloch at jmcculloch@bildgta.ca or 416-617-7994.

*Altus Group should be credited as BILD’s official source of new home market intelligence.

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