Record-breaking low sales in December cap off the worst year for GTA new home sales since 1990 – Implications will be far reaching

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TORONTO, January 27, 2025 (Globe News) – Greater Toronto Area, January 27, 2025 – The Building Industry Association (BILD) announced today that new home sales in Toronto (GTA) remained very low in December, reflecting the continued decline in sales that has defined 2024.

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There were 310 new home sales in December which were down 46 percent from December 2023 and 80 percent below the 10-year average, according to Altus Group*, Bild’s official source for new local market intelligence. In 2024 as a whole, there were 9,816 total new home sales, which were down 47 percent from all of 2023 and 69 percent below the 10-year average.

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“2024 will go down as a historic year, with new home sales in December hitting the lowest point in nearly 40 years, and the full year producing the lowest annual total since 1990,” said Edward Gage, director of research at Altus Group. “As 2025 begins, new homebuyers remain unwilling to re-enter the market despite lower mortgage rates, lower prices, and higher inventories.”

Condominium apartments, including units in low-rise, mid-rise and high-rise buildings, accounted for 150 units sold in December, down 63 percent from December 2023 and 86 percent below the 10-year average.

There were 160 single-family home sales in December, down one percent from December 2023 and 62 percent below the 10-year average. Single-family homes include detached homes, detached homes, and semi-detached homes (excluding urban areas).

Total remaining new home inventory fell slightly compared to the previous month, to 21,787 units. This includes 16,967 condominium housing units and 4,820 single-family residences. This represents a common 14-month inventory level, based on average sales over the past 12 months. Remaining physical inventory was essentially stable through 2024 with very little inventory added given the challenging economic environment.

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“We are literally watching the groundwork for the next housing crisis being laid today. New home sales in December and the low new home sales seen throughout 2024 in the GTA illustrate the problem the region faces adding to its housing supply,” said Justin Sherwood, vice president of communications, research and stakeholder relations. New.” Although the resale market has shown some signs of life thanks to falling prices, new designs continue to face the “build cost” challenge. High construction costs, high financing rates, and increasingly high municipal fees over the past five years have made it financially impossible to build homes that the market can, willingly, absorb at current prices. Sales are down and housing starts are sliding – and will continue to follow the sales trajectory. Without immediate action from governments to reduce development and municipal fees, the GTA’s future housing supply is at risk. “

Benchmark prices fell in December for both single-family homes and condominium apartments compared to the previous year. The benchmark price for new condominium apartments was $1,018,170, which has decreased by 2.8 percent over the past 12 months. The benchmark price for new single-family homes was $1,551,228, which fell 3.4 percent over the past 12 months.

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With 1,200 member companies, BILD is the voice of the homebuilding, residential and non-residential land development, and professional renovation industries in the Greater Toronto Area. The construction and renovation industry provides 256,000 jobs to the region and $39.3 billion in investment value. Build is affiliated with the Ontario and Canadian Home Builders Associations.

With 1,000 member companies, BILD is the voice of the homebuilding, residential and non-residential land development, and professional renovation industries in the Greater Toronto Area. The construction and renovation industry provides 256,000 jobs to the region and $39.3 billion in investment value. Build is affiliated with the Ontario and Canadian Home Builders Associations.

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For additional information or to schedule an interview, contact Janis McCulloch at jmcculloch@bildgta.ca (416-617-7994)

*Altus Group must be credited as Bild’s official source for new home market intelligence.

attached

• Altus Data Solutions Media Backgrounder December 2024

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