New GTA home market continues to focus on condos, despite rising prices

In June, new condominium apartment sales in the GTA continued to outpace new single-family home sales, despite another rise in the benchmark price of condo apartments and a slight softening in the prices of single-family homes, the Building Industry and Land Development Association (BILD) has announced.

Condominium apartments in low, medium and high-rise buildings, stacked townhouses and loft units accounted for 2,079 of the 2,500 total new home sales in June, according to Altus Group, BILD’s source for new home market intelligence. That was 61 per cent below record-setting June 2017—a month that saw 5,290 condos sold, the highest number ever—but only 17 per cent below the 10-year average.

The benchmark price of condominium apartments rose to $774,554, which was 23.5 per cent above last June.

Sales of new single-family homes, including detached, linked and semi-detached houses and townhouses (excluding stacked townhouses), with 421 units sold, were down 19 per cent from last June and down 71 per cent from the 10-year average. The benchmark price of new single-family homes, at $1,132,957, was down 9.4 per cent over the last twelve months.

“The relative strength of condo apartment sales is an indication of the state of the market,” David Wilkes, BILD president and CEO, said in a statement. “The cost of new homes in the GTA, both condos and single-family homes, is affected by government regulation and red tape that slows down the building of new supply, and by government fees, taxes and charges, which can account for almost a quarter of the cost of a new home.”

Wilkes said the association’s Build for Growth campaign leading up to the Oct. 22 municipal election is encouraging people to write to their candidates asking them to make housing a priority and to address factors that affect the affordability and supply of new housing in the GTA. The campaign asks that municipalities keep fees, taxes and charges on new homes fair, fund and build critical infrastructure, cut red tape and adopt a Standard of Service Excellence for building permits and approvals.

Voters can send their letters at buildforgrowth.ca.

June New Home Sales by Municipality**: