Report calls for immediate government intervention as home sales in the GTA are the lowest they have been in a decade

Record Low GTA New Homes Sales as Inventory Swells

According to a recent study by the Building Industry and Land Development Association (BILD), new home sales in the Greater Toronto Area (GTA) plummeted to an all-time low in July 2024. The report, conducted by Altus Group for BILD, revealed that 654 units were sold last month, a 21% decline compared to the same period in 2023 and a massive 78% drop compared to the 10-year average.

The GTA's struggling housing market was further highlighted by the fact that condos, apartments, stacked townhouses, and lofts accounted for approximately 287 units sold in July, while only 367 single-family detached homes were sold. This represented a one percent decrease from last year and a staggering 42% drop compared to the 10-year average.

Edward Jegg, Research Manager with Altus Group, who conducted the study for BILD, said, "GTA new homes sales in July 2024 sank to another record monthly low as buyers remained unwilling to leave the sidelines." Jegg also noted that a tandem relationship between lower interest rates and the inevitable increase in inventory will hopefully boost property sales as long as consumer confidence improves over the coming year.

At the time of publication, BILD's research had revealed that the current benchmark price for condos in the GTA was $1,020,179, while detached homes hovered around $1,585,881.

As a byproduct of this ballooning inventory, experts are now calling for direct government intervention to avoid further slowdowns in new construction activity and to prevent the GTA's housing shortage from reaching unprecedented levels over the next few years. Justin Sherwood, SVP for Communications and Stakeholder Relations with BILD, stated, "Without immediate action by the government, new construction activity will continue to slow and the GTA's housing shortage will reach unprecedented levels over the next few years."

For more information on this study, visit BILD's official website.