GTA new single-family home sales continue to soar into fall
|Toronto Star 28 Oct 2020 at 09:00|
September’s sales of new construction single-family homes in the GTA have hit the highest levels for that month since 2003, with the benchmark price rising 9.1 per cent to about $1.2 million year over year.
The benchmark price of a new condo soared 20.9 per cent year over year in September, to about $1.02 million, according to the Building Industry and Land Development Association (BILD) on Wednesday.
Single-family homes — including detached, semi-detached, town and linked homes — saw a 168 per cent year-over-year sales gain last month, more than double the 10-year average.
The 2,334 units sold last month reflect “what one person recently called, ‘a race for space,’ ” said BILD CEO David Wilkes. “There has been incredibly strong sales in lowrise.”
“There are a number of things that are influencing that — lifestyles associated with the pandemic , the continued liquidity of the market. We’re seeing any inventory that comes online, from a lowrise perspective, the demand is absorbing that inventory fairly quickly,” he said.
But condos have held their own, said Wilkes. The 2,603 September transactions represented a 15 per cent year-over-year increase, about 33 per cent above the 10-year average.
Detached houses and towns saw particularly strong gains, said BILD.
“The single-family home market was very active in September, with particularly strong activity seen at newly launched detached and townhouse communities. To date this year, demand for new single-family homes has outpaced supply,” said Ryan Wyse of Altus Group, which tracks new homes sales for the industry.
The single-family home sales performance was less dramatic than August when that month’s transactions rose 355 per cent year over year.
Wilkes said he was hesitant to predict whether the upward trend in new home sales would continue to the end of the year.
“The facts suggest that conditions remain for very strong sales going forward,” he said.
The market demand for lowrise housing has evolved so quickly, it’s difficult for housing policy to keep up, said Wilkes.