Urgent Update: GTA Condo Sales Plunge 44% in September 2024

UPDATE: New reports confirm that condo sales in the Greater Toronto Area (GTA) have plunged by 44% in September 2024 compared to the same month last year. Just 155 new condos were sold, marking a significant decline that raises urgent concerns about housing supply in the region.

According to a report released by the Building Industry and Land Development Association (BILD) on Tuesday, only 53 new properties found buyers in the City of Toronto. “The trend we saw in September reflects a pattern we’ve witnessed over the past few years; sales are trending downward,” said Dave Wilkes, President and CEO of BILD. He emphasized that this is not just a condo issue but a broader housing crisis affecting all market segments across Canada.

Wilkes warned, “This serious problem will result in a lack of housing supply over the next two to three years. Without new starts, we will see significant job losses.” The ongoing decline in sales also poses a major threat to the future availability of housing. As of September, only 1,538 condos have been sold in the GTA this year, down a staggering 60% from 2024 and 90% below the 10-year average.

Breaking down the numbers further, outside of Toronto, sales were equally disappointing: 15 condos in Durham, 35 in Halton, 43 in Peel, and just 9 in York. “It’s definitely a huge drop from last year,” commented Victor Tran, mortgage and real estate expert at Rates.ca. He noted that many new condo developments have stalled or been canceled due to a lack of buyers willing to purchase pre-construction properties.

The repercussions extend beyond condos; a total of 438 single-family homes and condo apartments were sold last month, which is a 29% decrease from September 2024. Despite the decline in sales, the benchmark price for a new condominium apartment remains relatively steady at $1,033,317. However, inventory levels have reached a staggering 22 months, based on average sales over the past year, the highest rate seen to date.

Wilkes expressed concern that while inventory is high now, a lack of new construction could lead to severe shortages in just a few years. “Today’s sales are tomorrow’s starts,” he stated. Without immediate action, such as government initiatives to cut red tape, the GTA risks facing a housing crisis that could severely impact affordability and access to housing.

Tran added, “The cost to purchase pre-construction condos is still prohibitively high, making financing a significant challenge.” For potential buyers, the uncertainty about future employment only adds to the hesitance to invest in new construction. “It’s a daunting prospect,” he noted.

In response to the ongoing crisis, the Ontario government recently announced a plan to waive the HST on new homes priced up to $1 million for first-time homebuyers. Wilkes remarked, “While this is a step in the right direction, the market remains stalled. Continuous government action is essential to stimulate housing development.”

As the situation develops, real estate experts urge potential buyers and investors to stay informed on market trends and government initiatives. The urgency for action has never been clearer; the future of housing in the GTA hangs in the balance.