New Home Sales in Toronto Stay Low in September, But There's Hope for Buyers!

New Home Sales in Toronto Stay Low in September, But There's Hope for Buyers!

New home sales in the Greater Toronto Area saw a slowdown in September, but a recent report hint that now could be a great time for buyers! The Building Industry and Land Development Association (BILD) shared its latest findings on Monday, revealing that there were 591 new home sales last month—a significant 69% drop compared to last year.

Breaking it down, 344 of these sales were for single-family homes, like detached, linked, semi-detached houses, and townhouses, which is a 41% decrease from September 2023. Condominiums also faced a tough month, with only 247 units sold down 81% from the previous year.

Despite this sluggish performance, Edward Jegg, research manager with Altus Group (BILD’s new home market insights provider), remains optimistic. He noted, “Even with three consecutive rate cuts from the Bank of Canada, GTA new home sales have struggled this September.”

Since the central bank began lowering its policy interest rate in June, from 5% to 3.75%, the market is showing signs of readiness for buyers. “We now have a market with plenty of inventory, dropping prices, and an additional 50 basis point cut. It’s time for buyers to make their move!” Jegg encouraged.

The report also highlighted that the remaining inventory of new homes has slightly increased, reaching nearly 22,000 units—this includes about 17,500 condos and close to 4,500 single-family homes. While the inventory level remains high at 13.8 months based on average sales, it reflects a trend seen since autumn 2023.

However, the longer sales stay low, the greater the potential impact on future housing starts in the GTA, which could lead to inventory shortages and rising prices down the line. The report indicates that today’s market conditions might set the stage for a future supply crunch.

Lastly, despite the slower sales, benchmark prices for new homes saw a slight dip last month. The average price for condos is now $1.025 million (down 1% year-over-year), while single-family homes have decreased to $1.565 million (down 0.1%).

So, while the market is a bit slow, there are definitely opportunities for buyers to explore!