A recent study by Altus Group for the Building Industry and Land Development Association, sheds light on the current state of Toronto’s new home market. It’s an interesting snapshot of what’s going on, and I think you’ll find it helpful.
Here’s the quick scoop:
Worst February for New Home Sales in History
New home sales took a huge hit in February, with a shocking number of nearly 17,000 new and pre-construction condos sitting unsold. Just 152 units were actually sold.
High Prices Persist
Despite the drop in sales, prices remain high. The benchmark price for a new condo in Toronto is still a hefty $1.02 million — down only 2.4% from last year.
Buyers Are Frozen
Even though interest rates are coming down, affordability remains a major challenge for buyers. To put it into perspective, a 20% down payment on a $1M property is still over $200,000. That’s a big ask for most people.
Smaller Units
The size of new condos is shrinking. The average new condo now comes in at just 766 sq ft — a significant drop from over 900 sq ft in 2022. Smaller units mean less space, but the prices are still sky-high.
Single-Family Homes Struggling Too
It’s not just condos. New and pre-con single-family homes are also facing tough times. There were only 248 sales in February across the GTA, compared to nearly 5,000 homes on the market.
What does this mean for you?
This is a good opportunity to stay informed on what’s happening in the market. With prices still high, affordability challenges, and shrinking unit sizes, it’s crucial to help you make the most informed decisions possible.
If you have any questions or would like to discuss these trends further, feel free to reach out anytime!
