New home listings in Greater Toronto found a lot of deep-pocketed buyers in March. BILD GTA data shows new home sales had the second-biggest March in the past 20 years. People must really want a new home in Toronto, because prices jumped hundreds of thousands of dollars in just a year.
Greater Toronto New Home Prices Rise By Up To $327,000
The benchmark price of a new home in Greater Toronto pushed to a new record high. Single-family homes reached a benchmark of $1,443,638 in March, up 5.10% ($70,165) from a month before. This brings the benchmark 29.4% ($327,700) higher than the same month last year. It was more than 3x the median household income.
The benchmark price of a new condo apartment reached $1,064,317 in March, up 2.13% ($22,253) from the previous month. This works out to an increase of 8.3% ($58,900) from the same month a year before. The increase for condos is still an astronomical price increase. It just seems almost slow when compared to the sharp climb single-family homes made.
Greater Toronto New Home Sales Increased By Over 26%
New home sales picked up after a minor slow down earlier this year. Greater Toronto new home sales reached 5,003 in March, up 26.53% from the same month a year before. Single-family homes represented 1,706 of the sales, up 75.33% over the same period. Condo apartments represented the remaining 3,297 new home sales, up 10.60% from last year. Single-family homes were most of the growth, and are largely located outside of the city.
Greater Toronto New Home Sales
Total March new home sales in Greater Toronto. Source: BILD GTA; Altus Group; Better Dwelling.New Home Sales In The City Lagged The Greater Region
In the City of Toronto proper, new home sales were brisk as condo sales climbed. The City represented 2,387 of the sales in March, up 20.23% from the same month a year before. Single-family homes represented 63 of those sales, up 36.96% over the same period. Condo apartments were the remaining 2,324 of the sales, up 19.73% from last year. While single-family sales are up the most, the relatively small volume doesn’t mean much. The jump in condo sales is more meaningful though.
Greater Toronto New Home Sales
Total new home sales in Greater Toronto for March, by region. Source: BILD GTA; Altus Group; Better Dwelling.The Least New Home Inventory For March Since 2017
Greater Toronto’s new home inventory is significantly lower than usual. The remaining inventory fell to 11,471 new homes in March, down 17.67% from the same month last year. This is the least inventory for March since 2017. There was a record number of condos launched in February. This allowed a number of sales to be pushed into March. However, there were few new launches in March itself. Many project launches have also been indefinitely delayed, contributing to low inventory.
Rising sales and falling inventory may lead to even more pressure on rising prices. The sales to active listings ratio (SALR) reached 43.61% in March, up from 28.38% a year ago. When the SALR is above 20%, prices are expected to rise. Below 12%, and they are expected to fall. Between 12% and 20%, and the demand would be even across the market. This is the highest ratio for March since 2017.
Greater Toronto New Home Sales To Active
The ratio of sales to active listings for new homes in Greater Toronto, for the month of March. Source: BILD GTA; Altus Group; Better Dwelling.Greater Toronto real estate is seeing a lot more home sales, and a lot less inventory these days. Delayed launches are likely to persist as long as builder costs remain unpredictable. Still, even in a low inventory environment, home prices rising up to a third of their value is a tough act to follow.
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Sounds like a nice and stable increase, and the government is right that prices can never fall.