GTA's new home market slows as prices remain high in November

TORONTO, Dec. 21, 2017 /CNW/ - New home sales in the GTA slowed slightly in November, with condo apartments continuing to drive the bulk of the sales and a record low number of new single-family home sales, the Building Industry and Land Development Association (BILD) announced today.

There were 3,473 new homes sold in November, according to Altus Group*, BILD's official source for new-home market intelligence. About 91 per cent of these (3,161 units) were condominium apartments in low, medium and high-rise buildings, stacked townhouses and loft units. While condo apartment sales for November were down eight per cent from November 2016, they were still 28 per cent above the 10-year average of 2,465.

Sales of new single-family homes, including detached, link, and semi-detached houses and townhouses (excluding stacked townhouses) contributed only nine per cent (312 units) to total new home sales in November, down 82 per cent from last November, 76 per cent below the 10-year average of 1,319 for November, and a record low for any November for single-family sales since Altus started tracking in 2000.

With 7,455 units sold, single-family homes represented only 17.3 per cent of the 42,992 new homes sold in the GTA up to the end of November. The number of single-family new home sales so far this year is down 58 per cent from last year and 49 per cent below the 10-year average.

"The November data should not be interpreted as a sign of diminished demand for single-family housing in the GTA, in fact, quite the opposite," says BILD President and CEO Bryan Tuckey. "Single-family housing is still the first choice for many people, especially for those with families. A big reason single-family homes represent a decreasing proportion of new home sales is that people simply cannot afford them. Our industry wants to build the single-family homes people want at prices they can afford, but we are required to implement provincial policies such as the Places to Grow Act, which mandate intensification."

In November, the benchmark price for available new single-family homes was $1,223,610, which was 25.1 per cent above last November's benchmark price of $977,890. Meanwhile the benchmark price for available new condo apartments was $702,992 in November, 42.6 per cent above the November 2016 benchmark price of 493,137.

"The decline in new single-family home sales in the GTA relative to last year in large part reflects low inventories of new homes available to purchase – and in particular, the lack of more affordable product," said Patricia Arsenault, Altus Group's Executive Vice President of Research Consulting Services. "As well, with more resale single-family homes available to purchase compared to last year, many potential new home buyers now feel they can take the time to explore their range of options more carefully."

The supply of single family housing increased slightly in November, to 3,438 single family lots from 3,192 lots at the end of October. However, overall supply of new housing decreased in November, to 11,788 units, which is well below what is considered a healthy level. Supply of new housing is typically measured by the number of new homes available for purchase in builders' inventories at the end of the month and includes units in pre-construction, under construction and completed projects. A healthy new home market should have nine to 12 months' worth of inventory and right now inventory is at about three to four months.

November New-Home Sales by Municipality:
November 2017	Condominium Apartments			Single-family			Total
Region	2017	2016	2015	2017	2016	2015	2017	2016	2015
Durham	18	60	307	58	171	302	76	231	609
Halton	221	115	147	111	416	513	332	531	660
Peel	176	231	90	71	132	512	247	363	602
Toronto	2,326	2,715	2,010	7	120	45	2,333	2,835	2,055
York	420	320	229	65	864	475	485	1,184	704
GTA	3,161	3,441	2,783	312	1,703	1,847	3,473	5,144	4,630
Source: Altus Group

With more than 1,490 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 always be credited as BILD's official source of new-home market intelligence.

SOURCE Building Industry and Land Development Association

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