Interest rate hikes impacts GTA new home market

The Building Industry and Land Development Association (BILD) has called on the federal government to look into the performance of the housing market, following a new report revealing the GTA new home market exhibited a slowdown in July. 

According to BILD’s official source for new home market intelligence Altus Group, home sales in July decreased by 18% year over year, and the number was 50% below the 10-year average, following interest rate hikes in the past months that left potential homebuyers to become cautious. 

“It is time the federal government recognized its role in helping provinces, municipalities and the industry meet housing demand pressures for which its own policies and federal institutions are in part responsible,” said Dave Wilkes, president and CEO of BILD. “The measures within the government's scope that can help with affordability and new housing supply include deferring HST on purpose-built rentals, helping municipalities financially to deliver infrastructure that supports housing, and indexing the thresholds for the GST/HST new housing rebate.” 

Sales of condo apartments totaled to 828, down 39% year over year in July. The number was also the lowest number of condo apartments sold in July in 23 years. Single-family home sales were up 281% to 362, but the number was 51% below the 10-year average. Total new home remaining inventory slightly increased to 16,683 units. 

The benchmark price for new condo apartments was $1,084,768, which was down 9% over the last 12 months. Meanwhile, the benchmark price for new single-family homes was $1,673,696, which was down 13.5% over the last 12 months.