October's Slow Home Sales Hint at a Brighter Future Ahead

New home sales in the Greater Toronto Area (GTA) stayed significantly low in October 2024, with only 765 units sold—60% lower than October 2023 and 77% below the 10-year average. Condominium apartment sales saw the sharpest decline, with just 210 units sold, down 84% year-over-year, while single-family homes accounted for 555 sales, showing no change from the previous year. Total inventory rose slightly to 22,299 units, representing 14.4 months of supply, as the region faces challenges in new home construction, likely to impact supply in the coming years.

Despite the sluggish market, optimism for a rebound is growing as inflation stabilizes, interest rates drop, and new mortgage rules encourage buyers to re-enter the market. However, rising construction costs and high government fees remain key barriers to housing affordability. Encouragingly, the City of Vaughan recently lowered development charges by up to 25%, a move that could influence other municipalities to do the same, in order to boost housing construction and stabilize supply. Benchmark prices fell modestly in October, with new condominiums averaging $1,006,256 (down 1.6%) and single-family homes at $1,549,416 (down 4.9%) compared to last year.

All Data is sourced from Altus Data Studio. Readers should verify information before making real estate decisions.
Source: BILD Media Release