The GTA's Housing Market Is Slowing Down & Here's What That Means
The coming months could also be interesting for prospective homebuyers.
An aerial view of Toronto.
A new housing market report for the GTA is showing signs that things might actually be cooling off in the region (though it's not all good news).
According to the Building Industry and Land Development Association, things are "slowing down" for GTA's real estate, and if you're wondering what exactly that means, they are pointing to the number of new home sales in the region.
Per Altus Group, which is BILD's source for new home market intelligence, there were 3,645 units sold this past April, which is actually down by 29% from the same time last year.
Compared to the 10-year average, the sale of new single-family homes was 54% below, while new condos were actually 40% above.
"It was the 4th highest number of condominium apartment sales for April since Altus Group started tracking in 2000," the report reads.
But, the number of condo sales was down compared to last April.
"New condominium apartment sales are down from last year, but would have been viewed as robust in the pre-COVID world," Research Manager at Altus Analytics, Edward Jegg, said in the report.
"The headwinds of rising interest rates and soaring inflation are starting to act as a drag after an exceptional 16 months. Meanwhile, single-family sales continue to languish as affordability issues persist."
So, how much are houses going for on the market?
According to the report, the benchmark price for new single-family homes in the GTA was $1,787,186, while the benchmark price for new condos was $1,189,134 this past April. Ouch.
And, the housing market could get worse.
"The unpredictability in construction costs, the supply chain disruptions and the strikes our industry is currently experiencing are expected to impact housing supply in the GTA in the coming months," President and CEO of BILD, Dave Wilkes, said.
"Combined with the factors affecting the larger economy, we are likely to see some volatility in the housing market in the months ahead."
So, if you're looking to buy a home in Ontario, you might just want to consider settling down outside the 6ix where you can still find houses for $200,000 (that is, depending on where you look).
This article's cover image was used for illustrative purposes only.