GTA New Home Sales At 40-Year Low In December, Capping Off "Worst Year Since 1990"

In December 2024, new home sales in the Greater Toronto Area (GTA) reached their lowest point in nearly 40 years, marking the worst annual performance since 1990, according to the Building Industry and Land Development Association (BILD). Throughout the year, only 9,816 new homes were sold, representing a 47% decrease from 2023 and placing sales 69% below the 10-year average.

December alone saw a mere 319 new home sales, a 46% drop from the same month in 2023 and 80% below the decade-long average. These figures were almost evenly split between condominium apartments and single-family homes, with 150 and 160 units sold respectively. Condo sales experienced a significant decline, falling 63% year-over-year and standing 86% below the 10-year average. Single-family home sales saw a modest 1% decrease from December 2023 but remained 62% below the 10-year norm.

Edward Jegg, Research Manager at Altus Group, noted that despite lower mortgage rates, decreasing prices, and higher inventories, new home buyers were hesitant to re-enter the market as 2025 began.

Justin Sherwood, Senior Vice President at BILD, expressed concern over the declining sales, stating, "We are literally watching the foundation of the next housing crisis being laid today." He emphasized that the low sales throughout 2024 highlight the challenges the region faces in adding new housing supply.

BILD has consistently called for government intervention to make home building more affordable. They argue that rising construction costs, high financing rates, and increasing municipal fees have made it financially unfeasible to build homes at prices the market can support. Without immediate action to reduce development charges and municipal fees, the future housing supply in the GTA is at risk.

Despite the downturn in sales, the total remaining inventory of new homes decreased slightly from 21,971 units in November to 21,787 units in December, comprising 16,967 condos and 4,820 single-family homes. This brought the combined inventory level from 14.1 months down to 14 months, consistent with trends observed throughout 2024.