New Construction Home Sales Drop in November but Condo Prices Climb
New construction condo prices rose by double digits in November year over year in the Toronto region, while new single-family homes dropped slightly over the same period.
Compared to the same month last year, the average condo price rose in November to $786,602 up 11.9 per cent. New single-family house prices dropped 6 per cent to $1.15 million — down about $73,000 compared to November 2017.
Even though the number of single-family home sales was up in November — a category that includes detached, semi-detached and townhouses — the number of transactions is down significantly this year to date across all housing categories, according to figures released Wednesday by the Building and Land Development Association (BILD).
The number of single-family home transactions last month was up 8 per cent to 369 compared to November 2017, but down 51 per cent this year to date and 70 per cent below the 10-year average.
The 2,454 condos and stacked townhomes that sold in November were a 24 per cent year-over-year drop and a 40 per cent decline this year to date, but was only 6 per cent below the 10-year average.
Despite a slight increase in available inventory for consumers, the region still faces a housing supply shortfall, said BILD CEO David Wilkes.
“The importance of the housing supply issue cannot be underestimated because it really will define the region that we live in,” he said.
“The numbers for November continue to show positive trends in the industry, but we remain well short of the number of new homes we need to build to fulfill the demand we anticipate for the year and going forward,” said Wilkes.
October remained the best month for new construction home sales so far this year when 3,296 highrise and ground-level homes were purchased.
The condo market, which continues to dominate new home sales, is ending the year stronger than it started, said that Patricia Arsenault, executive vice-president of Altus Group, which tracks the industry. It signals that the downturn from last year’s record-setting market may be ending, she said.
The average size of a condo was down to 870 sq. ft. from more than 900 sq. ft. at the beginning of the year. The price average in November was lower at $904 per sq. ft.
Wilkes said he is encouraged by the provincial Progressive Conservative government’s attention to boosting the housing supply. Now municipalities should work to reduce the timelines for project approvals, he said.