New construction GTA condos hit record price of $1.25 million in March

While the price of a new construction condo reached record highs in the Greater Toronto Area during March, sales in the region saw a change from the market’s “breakneck pace,” of the past few months.

According to the latest information from the Building Industry and Land Development Association (BILD), there were 4,115 total new home sales in March, a 21 per cent drop from the same month last year. Yet, the number of sales in March was still 12 per cent above the region’s 10-year average.

Condo apartment sales accounted for most of the product sold last month, recording 3,277 transactions for units in low-, medium- and high-rise buildings, stacked townhouses and loft suites. March’s condo sales were down seven per cent from March 2021 and 34 per cent above the 10-year average. The majority of March condo sales were logged in Toronto, where 2,124 transactions took place.

New single-family homes — which includes detached, linked and semi-detached houses and townhomes but excludes stacked townhomes — reported 838 homes sold in March. Compared to the same period last year, new single-family home transactions decreased 50 per cent and were 32 per cent below the 10-year average. York Region reported the most single-family home sales in March, with 254 properties exchanging hands.

Year-to-date, 10,974 new GTA homes have sold during the first three months of 2022. There have been 2,089 single-family home sales (down 61 per cent from 2021) and 8,885 new condo sales (a 50 per cent annual increase) so far this year.

Edward Jegg, research manager at Altus Analytics at Altus Group, noted in the monthly BILD report that total new homes sales stayed strong in March, “[but] signs of slowing are emerging, as higher interest rates alongside record prices start to impact demand.”

The price of a new condo apartment in the GTA hit a record in March, reaching a new benchmark of $1,252,515, a 17.7 per cent increase over the last 12 months. Single-family units experienced an even higher rate of annual price growth, rising 27.3 per cent over the past 12 months to a benchmark of $1,838,396.

Demand continued to outpace supply in March. Although nine condo apartment projects were opened last month, remaining condo inventory dropped year-over-year for the tenth month in a row down to 7,220 units. Remaining inventory for single-family homes was more than 50 per cent lower compared to March 2021, falling to 830 units. Remaining inventory is defined as units in pre-construction projects, developments currently under construction and completed buildings.

“Although new home sales eased in March compared to the exceptionally strong pace of the past few months, demand continued to outpace the supply of new homes, leaving the region with an inventory shortfall,” said Dave Wilkes, BILD’s president and CEO, in the report. “We cannot let short-term market variations mask the root causes of the housing supply and affordability challenge in the GTA. We need to keep our eyes on the long-term solution—building more new homes.”