The Building Industry and Land Development Association (BILD) just released its new home sales data for November 2017, announcing a dip in sales and an increase in average prices.
According to Altus Group, BILD’s trusted source for new home intelligence, there were 3,473 sales in November, 91% of which were condos! Compared to last year, condo sales are down 8% but still 28% above the 10-year average.
That means there were only 312 single-family home sales last month, which is 82% lower than the same period last year and a whopping 76% below the 10-year average. This is also a record low for November since Altus Group started gathering data in 2000.
As of the end of November 2017, there were 42,992 new home sales, only 17.3% of which were single-family homes. That’s 58% lower than the same period last year and 49% below the 10-year average.
“The November data should not be interpreted as a sign of diminished demand for single-family housing in the GTA, in fact, quite the opposite,” says BILD President and CEO Bryan Tuckey. “Single-family housing is still the first choice for many people, especially for those with families. A big reason single-family homes represent a decreasing proportion of new home sales is that people simply cannot afford them. Our industry wants to build the single-family homes people want at prices they can afford, but we are required to implement provincial policies such as the Places to Grow Act, which mandate intensification.”
While sales hit record lows in the single-family market, the average price soared 25.1% to $1,223,610. The average price of a condo hit a record high of $702,992, which is a year-over-year increase of 42.6%.
When it comes to supply, there was a slight increase in single-family homes to 3,438 units. Overall, there were 11,788 new homes available across the GTA as of the end of the month. A healthy level would be 9-12 months of inventory, and this amount only accounts for 3-4 months.
“The decline in new single-family home sales in the GTA relative to last year in large part reflects low inventories of new homes available to purchase – and in particular, the lack of more affordable product,” says Patricia Arsenault, Altus Group’s Executive Vice President of Research Consulting Services. “As well, with more resale single-family homes available to purchase compared to last year, many potential new home buyers now feel they can take the time to explore their range of options more carefully.”
Clearly, the new condo market was super hot this year. We’re interested to see if the condo market stays as active throughout 2018.