A recent press release from Building Industry and Land Development Association (BILD) showed that in the GTA there was a sluggish start to the new home market this January 2023.
Altus Group is the official source for the BILD’s new home market intelligence and reported that there were on 567 new home sales in January. This is an 81% decrease since January 2022 and 70% below the 10 year average.
Single-family homes in particular have seen the biggest decrease as only 186 were sold in January. This marks the lowest level of single-family homes since tracking began. Even condo sales, which are a good option for affordability for FTHB’s are at their lowest level in 14 years with only 381 units sold.
There are many factors that could be the reason for this slow start. Interest rates haven’t stabilized just yet, inflation is high, FTHB don’t feel like they can afford to purchase, and the new homes that are being built are getting further away from city hubs. Regardless of how the market is looking now, Ontario still needs to build 1.5 million new homes in the next decade to accommodate for our population growth. This slow period won’t last forever.
With all the doom and gloom in the media regarding real estate, those who are waiting to get into the market may feel unsure and lost but it is still a good investment to purchase real estate and 2023 might just be the year to do it.
To chat more about how to get in the market contact us here: https://doorbell.ca/services/
To read more about the new home stats click here: https://realestatemagazine.ca/gta-new-home-market-sees-slowest-january-in-24-years/
*Single Family homes include detached, linked, and semi-detached houses and townhouses (excluding stacked townhouses).
*Condo units include low, medium, and high-rise buildings, stacked townhouses, and loft units.