In the midst of a recent marked slowdown in activity across the country, the GTA has experienced a considerable increase year after year in sales of new homes, according to the Construction Industry and Territorial Development Association.
Citing data from Altus Group, BILD announced earlier this week that GTA’s new home sales volume increased 14% annually in January, reaching 1,362 transactions.
A deviation from this trend was the segment of single-family homes, in which their sales were liquidated at levels 53% lower than the average of 10 years for this asset class. The new condominium apartments represented a notable part of last month’s activity, with sales only 5% lower than the average of 10 years.
Despite the bumps in the road, BILD president and CEO David Wilkes considered the January numbers a welcome change.
“It seems that the market is returning to typical levels after a particularly difficult year,” said Wilkes. “With the arrival of the spring budget, we are asking the federal government to take measures to make it easier for first-time homebuyers to enter the housing market.”
“The improvement in new home sales last January is consistent with our perspective of somewhat higher annual sales in the GTA this year, after the fall in 2018,” added Altus Group executive solutions VP Patricia Arsenault.
Healthy sales left their mark on the remaining inventory of the region, which includes pre-construction projects, units currently under construction and finished buildings. The supply was reduced to 15,530 units composed of 10,364 units of apartments and 5,166 single-family houses.
In terms of price levels, single-family homes saw their reference value decrease by 8.1% year-on-year in January, to $ 1,130,046. On the other hand, the average price of an apartment unit in condominium GTA grew by 12.5% during the same period, up to $ 803,638.
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