Sales of newly-built condos in the Greater Toronto Area totalled 2,003 in May, accounting for the bulk of the 2,345 total new home sales.
While condo sales were 47% below May 2017’s record high, they were just 1% behind the 10-year average for May.
“May new condominium apartment sales were very encouraging,” noted Patricia Arsenault, Altus Group’s Executive Vice-President, Research Consulting Services. “Not only was it the strongest month since last November, but the sales of 2,003 units are impressive in historical terms: there have only been five other years where May new condominium apartment sales topped this year’s performance.”
The figures are part of a report from the Building Industry and Land Development Association (BILD), which also reveals a 25.4% year-over-year rise in the benchmark price for new condominium apartments in low, medium and high-rise buildings, stacked townhouses and loft units ($758,370).
Inventory is down to 9,345 as only five developments, totalling 710 units, opened in May.
Single-family home sales, prices down
The benchmark price for single-family homes was down 6.4% year-over-year to $1,144,191; and sales of just 342 homes meant sales dropped 33% from last May and down 78% from the 10-year average.
But the fall in prices may be about to change; and not in a way that will benefit sellers.
“It is doubtful prices will continue to moderate, considering embedded government fees, taxes and charges, and high land costs due to regulatory constraints,” said David Wilkes, BILD President & CEO.
BILD is asking residents to send letters calling for action on the GTA’s housing issues to candidates for municipal office ahead of the October 22 elections.
