Housing sales in the Greater Toronto Area (GTA) hit a record-breaking low in April, according to recent numbers.
New home sales dropped 56 percent in April, the Building Industry and Land Development Association (BILD) said, adding they are 65 percent below the 10-year average. Sales of single-family homes were down 45 percent from the same time last year, and 48 percent below the 10-year average. Condo sales are 64 percent lower from April 2023, and 75 percent below the 10-year average.
The organization blames high interest rates and low building levels for the situation, and is calling on the government to make changes.
“The current situation with high interest rates and slow preconstruction levels is creating a critical situation for the future housing supply of the GTA and demands the attention of all levels of government to create the economic and investment climate to balance the market over the next several years,” said Justin Sherwood, SVP Communications & Stakeholder Relations at BILD.
Mr. Sherwood said that low pre-construction sales will equate to lower housing starts in the future, which, in turn, means less housing supply.
“Land prices, input, and construction costs being what they are, taking steps to increase density and speed up approvals are the most readily available levers in the governments’ wheelhouses,” he said.
“Without action, we are looking at an acute shortage of supply in two to three years.”
BILD relies on Altus Group data, which said housing sales in the GTA were extremely slow in April.
“New home sales across the GTA remained glacial in April 2024,” said Edward Jegg, research manager with Atlus.
“With months of inventory at nearly a 15-year high and prices down year-over-year, there are plenty of opportunities for those looking to buy a new home ahead of what is anticipated to be an increased demand once interest rates soften and buyers currently sitting on the sidelines return to the market.”
Benchmark prices increased in April for both single-family homes and condos. For single-family homes, the new benchmark price is $1.6 million, down 9 percent from 2023. The benchmark price for a condo in the GTA is just over $1 million, down four percent in the last 12 months.
The number of homes for sale increased in April when compared to the previous month, with 16,478 condo units for sale and 3,614 single-family homes available. BILD said it was one of the highest inventory levels for new homes in the last decade.
Despite a drop in prices, a recent report by Zoocasa found that housing in Toronto and Vancouver is less affordable than in New York City. It also said housing is more affordable in Chicago, Dallas, Miami, Nashville, Phoenix, Philadelphia, and Seattle than in the two Canadian cities.
Jennifer Cowan contributed to this report.
