Amid rising interest rates and stalling prices, new home sales dropped to a historic low in Toronto last month.

According to a new report from the Building Industry and Land Development Association (BILD), just 406 single-family homes were sold across the GTA in October.

The figure, courtesy of data from Altus Group, is down 64 per cent from October 2021, and is 67 per cent below the 10-year average. The dwindling numbers marked the lowest October for single-family home sales since the company began tracking the data in 2000.

Despite historically low sales for the month, activity was "much improved" compared to August and September, said Edward Jegg, Research Manager at Altus Group.

"Buyers are returning as they become acclimatized to the new market realities of higher mortgage rates and softening prices," Jegg said.

Toronto house sales plummet to an all-time low as buyers recoil from markethttps://t.co/Y4HnZBTJFz #Toronto #RealEstate

— blogTO (@blogTO) August 24, 2022

Though still up on an annual basis, prices eased somewhat month-over-month in October.

The benchmark price for new single-family homes single-family homes - which include townhouses and detached, linked, and semi-detached houses - hit $1,815,642 last month, a 9.6 per cent annual increase.

Sales of new condominium apartments, including units in low, medium, and high-rise buildings; stacked townhouses; and loft units, were down as well in October, albeit less so.

A total of 1,601 units were sold last month, down 50 per cent from October 2021 and 40 per cent below the 10-year average. The benchmark price for new condo apartments reached $1,147,318, an annual increase of nine per cent.

Overall, 2,007 new homes were sold in the GTA last month, a 53 per cent decline from October 2021, and 49 per cent below the 10-year average. The dwindling sales marked the lowest level of new home sales for October since 2008.

Between September and October, total new home remaining inventory dropped to 12,588 units, more than 10,770 of which were condos, lagging behind the 10-year average by 40 per cent.

The GTA has five months of condo inventory and four months of single-family inventory; a balanced market would hold between nine and 12 months of inventory.

The region's lack of supply will "constrain" people's ability to find housing as demand begins to reassert itself, noted Dave Wilkes, BILD President and CEO.

The Government of Ontario has pledged to build 1.5 million new homes over the next decade. Outlined in the new "More Homes Built Faster Act," the province's plan pledges to reduce costs and cut what it calls the "red tape" surrounding the approval of building plans.

However, critics of the act have said it will lead to decreased affordability and wreak havoc on the environment.