New construction home prices and sales of new single-family homes in the GTA continued to rise year over year to double digits in October as consumers seek more space to physically distance themselves and work from home during COVID-19.
But the number of condo sales plummeted 32 percent year-on-year in October, the Building Industry and Land Development Association (BILD) said Thursday.
The benchmark asking price for a condominium rose 18.8% a year this October to $ 990,880, but sales were 32% lower last October and 20% lower than the 10-year average.
The benchmark asking price for new single-family homes – including single-family, semi-detached and town homes – was $ 1.21 million, up 12.7 percent from last year. The 1,914 single-family homes sold last month, an annual increase of 44%, came in at 42% above the 10-year average.
While overall sales continue to be strong, the pandemic has delayed some building approvals and slowed immigration, a key driver of Toronto area housing demand, said David Wilkes, CEO of BILD.
“We are seeing some specific impacts of the pandemic that are causing sales to drop in some areas, but as we evolve from the pandemic these factors will also dissipate, particularly immigration. In the long run, the situation is still very bullish, “he said.
A number of condominium projects were launched in October, but the 2,340 units sold could reflect how those transactions take place under COVID-19 restrictions, said Ryan Wyse, analytics and data solutions manager for Altus Group. , which tracks new home sales. and prices.
“Virtual visits, signatures and sales offices by appointment have allowed the market to continue operating during the pandemic. However, sales launches have changed – instead of the crowds at the opening, we’re seeing a shift to appointments over a longer period of time, ”he said.
The industry expects sales of new launches to take longer under current conditions, Wyse said.
Sales of some more expensive condo deals in late September didn’t register until October, accounting for part of the benchmark price hike, he said.
This year to date there have been 14,000 single-family home sales, an 80% increase in the first 10 months of 2019 and 19% more than the 10-year average.
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