New single-family home sales in Toronto soared 81% in 2020

New single-family home sales across the Toronto region skyrocketed in 2020, mirroring the shift in buyer preferences that played out in the resale market last year.

Data for the full year published today by the Building Industry and Land Development Association (BILD) showed buyers scooped up 16,973 new single-family homes in 2020. That’s 81 percent higher than the total achieved in 2019 and 25 percent above the 10-year average for the region.

The single-family homes category includes new detached, linked and semi-detached homes and townhouses, according to BILD’s data partner Altus Group.

The relative sluggishness in the high-rise market meant overall new home sales rose a more modest five percent last year compared to 2019. The total number of new homes sold across the Toronto region was 37,669, with condo sales making up 20,696 of the total. Condo sales, which include units in new low-, mid- and high-rise buildings were down 22 percent from a year ago and came in 11 percent below the 10-year average.

While it was clear that single-family home demand kept new home sales from plummeting in 2020, Altus Group said the annual total showed the Toronto market’s resilience.

“Looking back at 2020, the resilience of the GTA new home market was very evident, highlighting the underlying demand for housing in the face of economic uncertainty,” said Altus Group’s Ryan Wyse in a media release.

“Given the significant changes brought on by the pandemic, the industry and consumers were able to adapt quickly, and the result was an overall increase in sales compared to 2019, with a particular focus on single-family options,” he added.

Looking back at December data, BILD President David Wilkes noted that new home inventory was relatively low by the year’s end. Available new home inventory in the Toronto region sat at 13,171 units in December, the lowest level recorded since March 2018.

“A healthy new home market should have nine to 12 months’ worth of inventory but due to the disruptions brought about by the pandemic, we currently have only about four months’ worth, based on the pace of sales in the last year,” said Wilkes.