Sales of newly built homes continued to fall in July as condo sales slumped and single-family sales remained subdued despite a jump.
A report from the Building Industry and Land Development Association (BILD) shows that combined sales were down 44% year-over-year and were 55% below the 10-year average.
Data from the Altus Group reveals sales of new condominium apartments in low, medium and high-rise buildings, stacked townhouses and loft units were down 52% from July 2017 to 855 units, 40% below the 10-year average.
Meanwhile, sales of new single-family homes, including detached, linked and semi-detached houses and townhouses (excluding stacked townhouses) were up 85% year-over-year. However, the 2017 figure was the lowest for decades (117) and July 2018’s total was 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,” explained Patricia Arsenault, Altus Group’s Executive Vice-President, Data Solutions. “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.”
Prices remain steady amid tight supply
Despite weaker sales, prices of new homes in the GTA were steady in July as inventory remained tight.
The benchmark price of new condominium apartments was $774,759, up 16.5% from last July, but virtually unchanged from June. The benchmark price of new single-family homes was $1,142,574, down 13.2% year-over-year and just 0.85 per cent above June 2018.
Total remaining new home inventory decreased to 14,784 units, comprised of 9,931 condo apartment units and 4,853 single-family units.
“We are still seeing a shortfall in condo apartment inventory,” said David Wilkes, BILD President & CEO. “Given the current pace of sales, we should have nine to twelve months’ worth of inventory, but we only have five. We expect that more condo apartment product will become available in the fall.”