New condo sales hit 10-year low in October
October sales of newly built GTA condos were the lowest they’ve been in 10 years as high interest rates held buyers back, say the latest numbers from the Building Industry and Land Development Association (BILD).
“It’s a sluggish, flat market,” said Justin Sherwood, BILD’s senior vice-president of communications, research and stakeholder relations.
“The story is all about interest rates and monetary policy. Until there’s a clear direction, if and when the Bank of Canada starts to lower rates, people are just sitting on the sidelines waiting.”
There were 1,304 condo units, including those in low, medium and highrise buildings, stacked townhouses and lofts, sold across the region in October, according to Altus Group Economic Consulting, BILD’s official data source. That’s down 20 per cent from last October and almost 50 per cent below the 10-year average. The benchmark price for new condo units, at $1.023 million, was down about 11 per cent year over year and also down slightly from September.
October saw the slowest overall sales of new homes since 2014, but sales of new single-family home sales, at 568, were up 47 per cent over October 2022. However, they were still 51 per cent below the 10year average.
1,304 There condo were units sold across the GTA in October, down 20 per cent from last October
The benchmark price for new single-family homes was $1.629 million, down about 10 per cent over last year but up slightly since September. Total new home remaining inventory increased from September, to 21,032 units, including 17,930 condos and 3,102 single-family homes, the first time since 2016 that it was more than 21,000 units.
“Inventory is creeping up, which is a good thing for new homebuyers,” said Sherwood.
“You’re seeing more choice, and a slight moderation in prices.”
Meanwhile, BILD is calling for the federal government to expand the exemption from HST on purposebuilt rentals under construction, not just those that started after Sept. 14.
The federal government recently announced the exemption in a bid to encourage construction of this type of housing, and the province followed suite with its portion of the tax.
Dave Wilkes, president and CEO of BILD, said purpose-built rental projects currently in construction are under pressure because of increases in costs since they started, and higher interest rates.
“This would ensure that these projects get completed as they were originally intended, as opposed to converted into condo projects,” he said.
Toronto Star Newspapers Limited