GTA new condo prices crack $1 million mark
February 12, 2021
Condo image cCredit: Tridel
New home prices in the Greater Toronto Area (GTA) have hit an all-time high, reports the Building Industry and Land Development Association (BILD). Benchmark condo prices topped $1 million for the first time as of the end of 2020.
“The benchmark price for new condominium apartments in December was $1,025,645 which was up 11.9 per cent over the last 12 months, and the benchmark price for new single-family homes was $1,321,186, which was up 21.4 per cent over the last 12 months,” according to BILD.
The higher prices are a reflection of high demand and shrinking inventory, BILD noted.
Overall in 2020, there were 37,669 new homes sold in the GTA, according to Altus Group, BILD’s official source for new home market data. These sales were up 5 per cent compared to 2019 and 2 per cent above the 10-year average.
“Looking back at 2020, the resilience of the GTA new home market was very evident, highlighting the underlying demand for housing in the face of economic uncertainty,” said Altus Group’s Ryan Wyse, manager, Analytics, Data Solutions.
With few new projects opening in December, as is typical for the month, total new home remaining inventory dipped from November 2020 to 13,171 units—lowest level since March 2018. Remaining inventory includes units in preconstruction projects, in projects currently under construction, and in completed buildings.
“A healthy new home market should have nine to 12 months’ worth of inventory but due to the disruptions brought about by the pandemic, we currently have only about four months’ worth, based on the pace of sales in the last year,” said BILD president & CEO Dave Wilkes.