Greater Toronto sales cooled in summer

September 4, 2023



The Greater Toronto Area (GTA) new home market slowed down considerably in July 2023, as rising interest rates left prospective buyers cautious during a typically a quiet month for new home sales, the Building Industry and Land Development Association (BILD) announced August 23.
There were 1,190 new home sales in July, which was down 18 per cent from July 2022 and 50 per cent below the 10-year average, according to Altus Group, BILD’s official source for new home market intelligence.
“GTA new home sales slumped in July,” said Edward Jegg, Research Manager at Altus Group. “The latest interest rate hikes have pushed many buyers to the sidelines again as affordability continues to deteriorate,” Jegg added.
Condominium apartments—including units in low, medium and high-rise buildings—stacked townhouses and loft units, accounted for 828 units sold in July. Sales were down 39 per cent from July 2022 and 50 per cent below the 10-year average. It was the lowest number of condominium apartments sold in July in 23 years.
There were 362 single-family home sales in July—up 281 per cent from July 2022 but 51 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 inched up in July from June 2023 to 16,683 units. Remaining inventory includes units in preconstruction projects, in projects currently under construction and in completed buildings.
With slowing sales and rising inventory, benchmark prices softened. The benchmark price for new condominium apartments was $1,084,768—down 9 per cent over the last 12 months. The benchmark price for new single-family homes was $1,673,696—down 13.5 per cent compared to July 2022.