New home sales in the Greater Toronto Area (GTA) continued to face challenges last month, but a recent report indicates the market may now present new opportunities for prospective buyers after four consecutive interest rate cuts.

The Building Industry and Land Development Association (BILD) released its latest data, showing a total of 591 new home sales in September—a significant 69 percent decrease compared to last year. Of these sales, 344 were single-family homes (including detached, linked, semi-detached houses, and townhouses), representing a 41 percent drop from the previous September. Condominium units fared even worse, with only 247 units sold, an 81 percent decrease year-over-year.

According to Edward Jegg, a research manager with Altus Group (BILD's market insights provider), new home sales in the GTA remained sluggish despite recent rate cuts by the Bank of Canada. The central bank began reducing its interest rate in June, lowering it from 5 percent, where it had been held since July 2023, to the current rate of 3.75 percent.

Inventory data from the report shows that new home inventory has slightly increased to almost 22,000 units, including approximately 17,500 condos and around 4,500 single-family homes. This level of inventory represents 13.8 months of supply based on the past year’s average sales—a high figure, reflecting a stagnating market with sluggish sales and fewer housing starts.

The report suggests that prolonged low sales will negatively impact future housing starts, potentially leading to inventory shortages and price increases down the line. Benchmark prices for new homes in September reflect this slowdown, with condo prices at $1.025 million (a 1 percent year-over-year decrease) and single-family homes at $1.565 million (a 0.1 percent decrease).

Concluding Summary

In summary, while GTA’s new home market is facing a slow period, recent interest rate cuts and increased inventory present an opening for buyers to re-enter the market. However, prolonged inactivity may trigger future supply shortages and price increases, underscoring the need for a renewed buyer interest to stabilize the region’s real estate landscape.


Zabi Afghanzada Realtor 416 879 2500
HomeLife Elite Services Realty Inc.,Brokerage
Independently Owned And Operated
Office 416 283 1555