GTA’s new home market slows down significantly

GTA’s new home market slows down significantly

Mortgage Broker News (Ephraim Vecina)/August 28 

Sales of new homes in the Greater Toronto Area fell by 44% on a year-over-year basis in July, per the latest data from the Altus Group.

The significant slowdown also marked a 55% decline from the 10-year average, according to Altus. Sales activity in the condo segment (covering low-, medium-, and high-rises) as well as stacked townhouses and loft units fell by 52% year-over-year and 40% from the 10-year average.

Meanwhile, last month’s completed transactions involving new single-family homes – including detached, linked and semi-detached houses and townhouses – shot up by 85% from July 2017, although still 77% below the 10-year average.

“New home sales in the GTA typically take a breather in the summer months compared to the spring,” Altus Group executive VP (data solutions) Patricia Arsenault said. “This July was no exception, although minimal new project launches in July, along with declining affordability of new condominium apartments due to recent price escalation, amplified the June-to-July decline in sales somewhat this year.”

The benchmark price of new single-family homes in the GTA in July was $1,142,574, representing an almost flat 0.85% increase from June and 13.2% up from July 2017. Meanwhile, the benchmark price of new condominium apartments stood at $774,759, essentially unchanged from June but up 16.5% from July last year.

Read the article on Mortgage Broker News.

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