The price of new construction single-family homes dropped across the GTA in January as supply continued to fall.
A new report from the Building Industry and Land Development Association released on Thursday found that the benchmark price of single-family homes in the GTA tumbled $60,000 from December’s benchmark to $1,771,162.
But that doesn’t mean GTA homes are anywhere close to a price correction. In fact, despite this month-over-month decline, the benchmark price still sits 30% higher than it did one year ago, thanks to the steadily increasing and record-breaking prices seen in nearly every month of 2021.
As the price for new single-family homes fell, so did the new construction condo benchmark price, dropping roughly $33,000 to $1,150,685. However, it still sits 13% higher than it did one year ago.
The number of sales in January saw a very small uptick from December’s numbers, with 579 new single-family homes and 2,274 new condos changing hands. New single-family home sales are up just 10 from December and are down 67% from the frenzied, record-setting buying seen in January 2021. New condos, on the other hand, saw 102 sales more than in December and were more than double the number of condo sales seen one year prior.
“January provided further evidence that, despite earlier pandemic-related disruptions, the City of Toronto remains an attractive location for new condo apartment investors and end-user buyers,” said Analytics Team Leader at Altus Group Edward Jegg. “Strong sales at the large number of recently opened City of Toronto projects boosted overall GTA new condo sales to their highest January ever. New single-family home sales, however, continued to be weak across the GTA, plagued by record low inventory.”
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At the end of the month, just 550 pre-construction, under-construction, and newly-built single-family homes were on the market.
“One needs to look no further than the strong demand and our weakening inventory numbers to know we have a housing supply crisis in the GTA,” said BILD’s Senior VP of Communications and Stakeholder Relations Justin Sherwood. “That is why BILD has welcomed the recent report from Ontario’s Housing Affordability Task Force and why we support its 55 recommendations to address the housing supply and affordability challenge in Ontario and the GTA.”