BILD bullish as new homes sales fall 69 per cent
October 3, 2017
Condos dominate GTA new homes sales
August new home sales in the Greater Toronto Area (GTA) dropped 69 per cent from the same month a year ago, but the Building Industry and Land Development Association (BILD) contends year-to-date sales are “still very strong.”
There were just 795 new homes sold in August across the GTA, according to new-home market research firm Altus Group.
Low-rise single-family homes, which include detached and semi-detached houses and townhomes, accounted for only 114 of the homes sold, while the remaining 681 were condo apartments in high-rise and mid-rise buildings and stacked townhomes.
BILD President and CEO Bryan Tuckey said August is typically a slow month and cautioned against reading too much into the drop. “One month does not a trend make. Late summer is a quiet time for real estate, and most builders wait until September to launch developments and bring new product to market,” said Tuckey. “We are expecting fall to be very busy, and 2017 could still be a record year of new home sales driven by the incredibly strong condo market.”
While August sales were down 69 per cent from August 2016 and 62 per cent below the ten-year average, year-to-date sales are still ahead of last year at this point and 28 per cent above the ten-year average.
The overwhelming majority of the 31,749 new homes purchased so far this year are condo apartments and stacked townhomes.
Only 20 per cent of year-to-date sales were low-rise single-family homes.
The supply is still far below what is considered a healthy level, according to Altus. At the end of August there were 6,608 multi-family homes and 1,880 single-family low-rise homes available for purchase in builders' inventories.
The average price for a new single-family low-rise house was $1.28 million, 38 per cent higher than a year ago.
The average price of a new multi-family home in the GTA in August was $644,327, 34 per cent more than in August 2016.
The average price per square foot for a condo was $750, down from July's $764. In August 2016, the average price per square foot was $595 and the average unit size was 808 square feet.