The housing sector has proven to be a major contributor to the local economy during the pandemic
The Greater Toronto Area continues to be one of the nation’s powerhouse markets, with home sales during the first six months of 2021 reaching 25% higher than the region’s 10-year average, according to the Building Industry and Land Development Association.
A total of 24,060 housing transactions took place in the GTA from January to June, data from Altus Group showed. Approximately 3,860 units were sold in June alone, 4% above the 10-year average for that month.
“The new home market has been a key driver of economic activity through the pandemic, providing jobs and homes for the residents of the GTA,” said Dave Wilkes, president and CEO of BILD.
Condo apartments represented 2,775 new home sales in the GTA last month, 13% higher than the 10-year average. On the other hand, single-family homes accounted for 1,085 transactions in June, 14% lower than the 10-year average. Total new home remaining inventory was at 11,451 units.
“The demand for new homes remains impressive, in particular given the challenges homebuyers have faced in the past year,” said Edward Jegg, analytics team leader of data solutions at Altus Group. “New product brought to the market has not kept pace with sales, and, as a result, relatively low inventories of product available to purchase continue to exert pressure on prices.”
By asset class, the benchmark price for new condominium apartments was at $1.058 million (up by 5.9% annually), while the benchmark for new single-family homes was around $1.406 million (up by 23.1%).
“As we look forward, we will be monitoring the continuing strength and speed of economic recovery, the return of typical immigration levels and the possible rise in interest rates, and their impact on the new home market,” Wilkes stated.