According to Building Industry and Land Development Association (BILD), the Greater Toronto Area (GTA) new home market was once again strong in May with total sales above the 10-year average.
BILD notes that new home sales were 5 percent above the 10-year average, with 3,661 units sold.
Condo accounted for 2,396 new home sales in May, which is an increase of 10 percent when compared to the 10-year average. Single-family homes sales were 3 percent below the 10-year average with 1,265 units sold in May.
“While sales of new condominium apartments were lower in May than the frenzied pace of the previous two months, they were still above the 10-year average for May as demand remains buoyant and activity settles into more sustainable levels,” said Ryan Wyse, Altus Group’s Manager, Analytics, Data Solutions. “Buyers continue to be attracted to new openings, with about half of the newly released units available for purchase before the last 10 days of May selling within the month.”
Total new home remaining inventory was 12,555 units in May. That number represents 3.3 months’ worth of inventory based on the current pace of sales but a balanced market would have 9 to 12 months of inventory. Remaining inventory includes units in preconstruction projects, in projects currently under construction, and in completed buildings.
“The low inventory levels reported in the May data underline the need for GTA municipalities to address chronic shortages of housing supply,” said Dave Wilkes, BILD President and CEO. “Municipalities need to speed up approvals of shovel-ready projects, and as we look ahead to continued population growth in the GTA, they need to evaluate all aspects of the development approvals process to ensure that the new homes the region needs are being built in a timely manner.”
The benchmark price for new condominium apartments increased in May compared to the previous month, to $1,063,973, which was up 8 per cent over the last 12 months. The benchmark price for new single-family homes decreased compared to the previous month, to $1,380,491, which was up 24.4 per cent over the last 12 months.