Toronto housing market got bleaker last month. The sales of single-family houses in the GTA fell to an “all-time low” in July, according to a market study from the Building Industry and Land Development Association (BILD).
Only 97 properties, including detached, linked, semi-detached, and townhouses, sold last month due to a lack of inventory and escalating costs, resulting in an 88% fall from 2021 and the 10-year average.
The Altus Group started tracking new single-family home sales in 2000, but sales were so poor that this month was the first time that number has fallen below 100 units sold.
However, sales of new condominiums, including those in high-rise buildings, stacked townhouses, and loft units, increased 5% from July 2021 and were 3% above the 10-year average.
According to Edward Jegg, Research Manager at Altus Group, new condominium unit sales had a healthy July, backed by buyer resiliency and stable prices. Contrarily, new single-family sales set a record low due to a decline in demand and a lack of inventory.
Under current circumstances, future homebuyers will have to pay a benchmark price of $1,191,716, up 9.2 cents from last year, for a new condo, and $1,933,912, up 27.4%, for a single-family home.
Dave Wilkes, President & CEO of BILD, says to have a massive challenge ahead to build 1.5 million new houses in Ontario to alleviate the housing crisis centred on the GTA.
According to a recent real estate firm Royal LePage survey, a staggering 25% of millennials who do not currently own a home fear they would never do so.
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