New homes sales in GTA in March 2022 declined by 21 percent compared to March 2021, but still remained 12 percent above the 10-year average, Building Industry and Land Development Association (BILD) has announced.
There were 4,115 total new home sales in March according to Altus Group*, BILD’s official source for new home market intelligence.
“Total new home sales remained relatively strong in March,” said Edward Jegg, Research Manager at Altus Analytics, Altus Group.
“But signs of slowing are emerging, as higher interest rates alongside record prices start to impact demand.”
The group said that sales of new condominium apartment units, including units in low, medium and high-rise buildings, stacked townhouses and loft units, with 3,277 units sold in March, were down 7 per cent from March 2021 and 34 per cent above the 10-year average.
New single-family homes, including detached, linked, and semi-detached houses and townhouses (excluding stacked townhouses), accounted for 838 units sold in March, which was down 50 per cent from March 2021 and 32 per cent below the 10-year average.
Despite the fact that nine condominium apartment projects opened in March, demand outpaced supply and condominium apartment remaining inventory fell year-over-year for the 10th consecutive month, to 7,220 units. Remaining inventory of single-family homes, at 830 units, was more than 50 per cent off from last March’s already low level.
The benchmark price for new condominium apartments reached a record price of $1,252,515 in March, which was up 17.7 per cent over the last 12 months. The benchmark price for new single-family homes was $1,838,396, which was slightly less than February’s record high, but still up 27.3 per cent over the last 12 months.
“Although new home sales eased in March compared to the exceptionally strong pace of the past few months, demand continued to outpace the supply of new homes, leaving the region with an inventory shortfall,” said Dave Wilkes, BILD President & CEO. “We cannot let short-term market variations mask the root causes of the housing supply and affordability challenge in the GTA. We need to keep our eyes on the long-term solution—building more new homes.”
Amer Rao, a South Asian realtor in Milton said that the demand was driven in part because of large number of South Asians who are willing to buy homes in this area.
Milton is home to a large number of South Asians, particularly those from India and Pakistan, and expats of these countries who are moving here from the United Arab Emirates.
Anjali Sharma, an Indo-Canadian resident of Milton has recently bought a home here. She has recently moved here from Dubai. She says housing prices weren’t too high for her as she herself came from a city where housing was expensive.
Shazia Nazir, Local Journalism Initiative Reporter, The Milton Reporter, Milton Reporter