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.