GTA new home sales very strong in November, inventories continue to fall
Toronto, Dec. 22, 2021 (GLOBE NEWSWIRE) -- Notice: To avoid inaccuracies, we recommend against making year-to-year comparisons between 2021 and 2020, as the new home market during the latter was affected by the global pandemic.
Greater Toronto Area, Dec. 22, 2021 ? The GTA new home market saw very strong sales in November, the highest for this month in more than two decades, the Building Industry and Land Development Association (BILD) announced today.
Total November new home sales of 5,042 were 29 per cent above the 10-year average, according to Altus Group*, BILD's official source for new home market intelligence.
Condominium apartments, including units in low, medium, and high-rise buildings, stacked townhouses and loft units, accounted for 4,274 units sold in November, 56 per cent above the 10-year average. It was the strongest performance of condo apartment sales for the month of November since Altus Group started tracking in 2000.
Sales of new single-family homes, including detached, linked, and semi-detached houses and townhouses (excluding stacked townhouses), accounted for 768 units sold in November, which was 33 per cent below the 10-year average.
"New condominium apartment sales soared to their second strongest month ever," said Edward Jegg, Analytics Team Leader at Altus Analytics, Altus Group. "Meanwhile, the new single-family market continues to be plagued by deteriorating affordability with persistent land/lot shortages leading to recurring record monthly prices."
As condominium apartment unit sales outpaced openings in November, remaining inventory decreased compared to the previous month, to 10,200 units. (Remaining inventory includes units in pre-construction projects, in projects currently under construction, and in completed buildings.) This was still well below the 10-year average of 16,000 units and current inventory represents less than four months' supply. The benchmark price for condominium apartments increased to $1,082,713 in November compared to the previous month, up 7.8 per cent over the last 12 months.
With new single-family home openings low, remaining inventory for single-family homes saw a very slight increase in November compared to the previous month, to 1,188 units. Inventory for single-family homes remains close to historic lows. The tight inventory contributed to another record in the benchmark price for new single-family homes, of $1,679,941 in November, which was up 33 per cent over the last 12 months.
"Housing affordability driven by lack of supply has become a critical issue in the GTA with broad societal implications," said Justin Sherwood, BILD's SVP. "Housing affordability will be a significant issue in the 2022 provincial and municipal elections. The current supply challenge is a man-made problem and BILD encourages candidates to bring forward meaningful supply side solutions in their platforms."
With more than 1,300 member companies, BILD is the voice of the home building, land development and professional renovation industry in the Greater Toronto Area. The building and renovation industry provides more than 230,000 jobs in the region and $26.9 billion in investment value. BILD is proudly affiliated with the Ontario and Canadian Home Builders' Associations.
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For additional information or to schedule an interview, contact Justin Sherwood at [email protected] or 416-371-6005.
*Altus Group should be credited as BILD's official source of new home market intelligence.
**Historical data are subject to revisions.
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