Toronto home prices reach stratospheric levels as sales plummet
The always entertaining Greater Toronto Area (GTA) housing market put on another show in May with a pronounced decline in home sales recorded, though this slowdown in selling activity was accompanied by spikes in the benchmark prices of new homes and condominium units in the region.
The Building Industry and Land Development Association (BILD) announced its May figures on Wednesday, with data sourced from Altus Group revealing a continued market slowdown that experts attribute to skyrocketing mortgage rates and an uncertain economy.
A total of 2,549 new homes were sold in May, marking a 40 per cent year-over-year decrease and a 26 per cent dip below the ten-year average.
Single-family homes, including detached, linked, semis, and towns, were the hardest hit in sales, with just 491 units sold in the region marking a 62 per cent drop from last May and 58 per cent below the 10-year average.
Condo and stacked townhome sales fared a bit better, with 2,058 units sold. This number may be several times the volume of home sales, but it still stands as a 31 per cent year-over-year decline and 10 points below the ten-year average.
According to Edward Jegg, Research Manager at Altus Analytics, the easing of sales in May can be chalked up to "rising mortgage rates and growing economic concerns."
With sales falling, inventory increased to over 10,000 units in the region, but prices just seem to keep climbing regardless of the conditions.
The GTA benchmark price — or the value based on the most popular selling features — for a new single-family home reached a staggering $1,814,774, an over 31 per cent year-over-year increase.
Sure, there are plenty of single-family homes out there for cheaper, and the GTA house price average is roughly a half-million bucks cheaper, but the most popular home types are charting higher.
The benchmark price for new condo sales climbed 10.5 per cent year-over-year to $1,176,080, substantially higher than the average price for these types of units.
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