The new domestic market GTA slowdown in April

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TORONTO, May 25, 2022 (GLOBE NEWSWIRE) – In April, the new domestic market for GTA showed signs of slowing from last year’s exceptionally strong pace, the Construction Industry and Land Development Association announced today.

April’s total new home sales of 3,645 units are down 29 percent from April 2021 though still 6 percent above the 10-year average, according to the Altus Group*, BILD’s official source for new local market intelligence.

Single-family homes, including detached, linked and semi-detached homes and townhouses (excluding stacked homes), accounted for 571 units sold, down 47 percent from last April and 54 percent below the 10-year average.

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Sales of new apartments, including units in low-, mid- and high-rise buildings, stacked condominiums and lofts, with 3,074 units sold, are down 24 percent from April 2021 but 40 percent above the 10-year average. was 4y The largest number of apartment sales for April since the Altus Group began tracking in 2000.

“New apartment sales are down from last year, but could have been considered strong in the pre-COVID world,” said Edward Gage, director of research at Altus Analytics, Altus Group. The headwinds of rising interest rates and surging inflation are starting to act as a drag after an exceptional 16 months. Meanwhile, single-family sales continue to weaken as affordability issues persist.”

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The record price for new single-family homes in April was $1,787,186, which is a 28.1 percent increase over the past 12 months and the record price for new condominiums was $1,189,134, which It represents a 12.3 percent increase over the past 12 months.

Due to a number of new project openings in April, the total remaining new home inventory increased compared to the previous month, to 9,327 units, comprising 7,936 condominium units and 1,391 single family homes.

“Unpredictability in construction costs, supply chain disruptions, and strikes currently taking place in our industry are expected to impact the GTA housing supply in the coming months,” said Dave Wilkes, President and CEO of BILD. “Together with factors affecting the larger economy, we are likely to see some volatility in the housing market in the coming months.”

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With over 1,200 member companies, BILD is the voice of the professional home building, land development, and renovation industry in the Greater Toronto Area. The construction and renovation industry provides more than 231,000 jobs in the region and $26.9 billion in investment value. BILD proudly partners with Ontario and Canadian home builders associations.

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For additional information or to schedule an interview, contact Justin Sherwood at jsherwood@bildgta.ca or 416-371-6005.

* The Altus Group should be credited as BILD’s official source for new local market information.

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