GTA new home market quiet in May

TORONTO, June 22, 2022 (GLOBE NEWSWIRE) — Greater Toronto Area, June 22, 2022 – The GTA market for new homes continued to slow in May, the Building Industry and Land Development Association announced today.

Total new home sales in May were 2,549 units, down 40 percent from May 2021 and 26 percent below the 10-year average, according to Altus Group*, BILD’s official source for market intelligence for new homes.

Sales of new condominiums, including low-rise, mid-rise and high-rise units, stacked townhouses and loft units, declined 31 percent from May 2021 to 2,058 units sold and were 10 percent below the 10-year average.

Single-family homes, including detached, connected and semi-detached homes and townhouses (excluding stacked townhouses), accounted for 491 units sold, down 62 percent from last May and 58 percent below the 10-year average.

“New home sales in GTA fell in May as consumers grapple with rising mortgage rates and growing economic concerns,” said Edward Jegg, research manager at Altus Analytics, Altus Group. “Inventory levels are rising but benchmark prices are showing resilience.”

The new condo benchmark price in May was $1,176,080, up 10.5 percent over the trailing 12 months, and the new single-family home benchmark price was $1,814,774, up 31.5 percent in May corresponds to the last 12 months.

The total stock of new homes increased compared to the previous month to 10,004 units, consisting of 8,050 condominiums and 1,954 single-family lots.

“While short-term macroeconomic trends point to a moderation in housing demand in the coming months, a failure to plan a consistent pipeline of new housing of all types will result in a future resurgence of the tight market conditions of recent years,” said Dave Wilkes, President and CEO from IMAGE. “This was the pattern after the 2017 market correction and the…