New report calls for urgent government action as GTA home sales in July at an all-time low
A home building industry association says new home sales in July were at an all-time low, and is calling on urgent action from the government.
The Building Industry and Lane Development Association issued a report on Wednesday, saying there were 654 new home sales in July, which was down 48 per cent from July 2023 and 70 per cent below the 10-year average, according to the association’s home market intelligence source Altus Group.
“GTA new homes sales in July 2024 sank to another record monthly low as buyers remained unwilling to leave the sidelines,” said Edward Jegg, research manager with Altus Group.
“Further expected decreases in interest rates in the coming months, along with elevated inventories, means there will be plenty of opportunities once consumer confidence improves.”
The report found that condominium apartments, including units in low, medium and high-rise buildings, stacked townhouses and loft units, accounted for 287 units sold in July, down 67 per cent from July 2023 and 81 per cent below the 10-year average.
It also found that there were 367 single-family home sales in July, down one per cent from July 2023 but 42 per cent below the 10-year average. Single-family homes include detached, linked and semi-detached houses and townhouses.
The association said in a news release that they recorded a high inventory level not due to new inventory coming to market, but rather due to low sales, which is causing an “unhealthy situation.”
The total remaining inventory of new homes in July increased compared to the previous month to 21,660 units, which includes 17,445 condominium apartment units and 4,215 single-family dwellings. This represents a combined inventory level of 15 months, based on average sales for the last 12 months.
“This is a high inventory level, maintaining the trend seen since autumn 2023 of remaining inventory levels near or just above the 20,000-unit mark,” the association said.
“Months of inventory are increasing not because the number of new units coming to market is dramatically increasing, but rather because sales are continually decreasing. This is an unhealthy situation, because as interest rates decrease, sales will return but it will take longer for new building to recover, setting up a future supply/demand imbalance.”
Justin Sherwood, senior vice president of communications and stakeholder relations at the association said the numbers present “a clear picture and signal the need for an urgent response from government.”
“Changes in interest rates will not solve what is an ongoing structural problem, particularly evident in the GTA. The cost to build, driven by excessive government fees and taxes, is simply too high,” Sherwood said. “Without immediate action by government, new construction activity will continue to slow and the GTA’s housing shortage will reach unprecedented levels over the next few years.”
The association said benchmark prices decreased in July for both single-family homes and for condominium apartments compared to 2024. The benchmark price for new condominium apartments was $1,020,179, which was down six per cent over the last 12 months. The benchmark price for new single-family homes was $1,585,881, which was down five per cent over the last 12 months.
CTVNews.ca Top Stories
Son charged with 1st-degree murder after father's death on B.C.'s Sunshine Coast
A 26-year-old man has been charged with first-degree murder in connection to the death of his father on the Sunshine Coast last year.
Loblaw using body-worn cameras at 2 Calgary stores as part of pilot project
Loblaw is launching a pilot program that will see employees at two Calgary locations don body-worn cameras in an effort to increase safety.
China is raising its retirement age, now among the youngest in the world's major economies
Starting next year, China will raise its retirement age for workers, which is now among the youngest in the world's major economies, in an effort to address its shrinking population and aging work force.
Trudeau says Ukraine can strike deep into Russia with NATO arms, Putin hints at war
Prime Minister Justin Trudeau says Ukraine should be allowed to strike deep inside Russia, despite Moscow threatening that this would draw Canada and its allies into direct war.
Driver charged with killing NHL's Johnny Gaudreau and his brother had .087 blood-alcohol level
The driver charged with killing NHL hockey player Johnny Gaudreau and his brother Matthew as they bicycled on a rural road had a blood-alcohol level of .087, above the .08 legal limit in New Jersey, a prosecutor said Friday.
Sisters finally see the Canadian 'aviation artifact' built by their father nearly 90 years ago
Two sisters have finally been reunited with a plane their father built 90 years ago, that is also considered an important part of Canadian aviation history.
What's behind the boom? The Manitoba community that nearly doubled in a decade
For decades, the Town of Ste. Anne was stagnant, but that all changed about 10 years ago. Now it is seeing one of the highest spikes of growth in the province.
Canadian warship seizes 1,400 kilos of cocaine off Central America
A Canadian warship has seized more than 1,400 kilograms of cocaine during an anti-drug-trafficking operation in Central America.
'I couldn't form the words': 23-year-old Ont. woman highlights need for rural health care after stroke
The experience of 23-year-old Muskoka, Ont., resident Robyn Penniall, who recently had a stroke, comes as concerns are being raised about the future of health care in her community.