GTA experiences slump in new home sales in April

New home sales in the Greater Toronto Area slumped to a record low in April as both builders and potential buyers “stepped back” from the heated activity of the first quarter, according to figures from Altus Group and the Building Industry and Land Development Association (BILD).

A total of 771 new homes was sold in April, down 80% from April 2019 and 78% below the 10-year average. Single-family homes, including detached, linked, and semi-detached houses and townhouses (excluding stacked townhouses), accounted for 301 new home sales, down 62% from last April and 79 per cent below the 10-year average.

Meanwhile, sales of new condominium apartments – including units in low, medium, and high-rise buildings, as well as stacked townhouses and loft units – at 470 units sold, were down 85% from April 2019 and 78% below the 10-year average.

According to BILD, the numbers in April represent a record low in total new home sales, as well as single-family and condominium apartment sales, since Altus Group started tracking them in 2000.

Patricia Arsenault, executive vice president of data solutions at Altus Group, said that April’s plunge in sales came as the industry adjusts to the “new reality” ushered in by the COVID-19 pandemic.

“Most planned new project launches were put on hold, sales programs for existing projects moved to virtual or by- appointment-only models, and short-term home-buying plans were disrupted by employment uncertainty, as well as the challenges of stay-at-home routines,” said Arsenault.

David Wilkes, president and chief executive officer of BILD, said that home sales numbers reflect the “impact of the COVID-19 pandemic on the GTA economy.”

“The good news is, the residential and commercial building and development industry, along with the professional renovations industry, is positioned to play a significant role in the recovery of our region and Ontario,” said Wilkes. “In the coming weeks, we’ll be putting forward recommendations for all three levels of government that can accelerate the healing of our economy.”

MBN

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