According to BILD (Building Industry and Land Development Association), December saw "record breaking" low sales for new build homes, closing out one of the worst years on record for the GTA.
"2024 will go down as a historic year, with December's new home sales hitting their lowest point in nearly 40 years and the whole year producing the lowest annual total since 1990." said Edward Jegg, Research Manager at Altus Group.
As we enter Spring 2025, it appears that NEW home buyers remain unwilling to re-enter the market despite lower mortgage rates, falling prices and elevated inventories.
Some other interesting data points from the GTA NEW Home report from BILD:
9,816 New Home Sales for 2024 representing a 47% decrease compared to 2023 (this is 69% below the 10 year average)
Why is this happening? Builders are facing a cost to build challenge due to increased construction costs, higher financial rates and soaring municipal fees. This results in Builders no longer being able to build new homes that the market can absorb at present prices.
As you are reading this, you are probably thinking, so what, there is plenty of resale inventory on the market, so it doesn't matter if there are fewer new homes being built. Understand that new homes are usually SOLD pre construction, so it is highly unlikely a Builder will move on to new projects if they can't sell the current project.
There is a silver lining in all of this, for those who are in a position to buy right now, there is a lot of choice, lower prices and improving mortgage rates.
Worst Year Since 1990 for NEW Home Sales
We are talking brand new Builds.
According to BILD (Building Industry and Land Development Association), December saw "record breaking" low sales for new build homes, closing out one of the worst years on record for the GTA.
"2024 will go down as a historic year, with December's new home sales hitting their lowest point in nearly 40 years and the whole year producing the lowest annual total since 1990." said Edward Jegg, Research Manager at Altus Group.
As we enter Spring 2025, it appears that NEW home buyers remain unwilling to re-enter the market despite lower mortgage rates, falling prices and elevated inventories.
Some other interesting data points from the GTA NEW Home report from BILD:
9,816 New Home Sales for 2024 representing a 47% decrease compared to 2023 (this is 69% below the 10 year average)
Why is this happening?
Builders are facing a cost to build challenge due to increased construction costs, higher financial rates and soaring municipal fees. This results in Builders no longer being able to build new homes that the market can absorb at present prices.
As you are reading this, you are probably thinking, so what, there is plenty of resale inventory on the market, so it doesn't matter if there are fewer new homes being built. Understand that new homes are usually SOLD pre construction, so it is highly unlikely a Builder will move on to new projects if they can't sell the current project.
There is a silver lining in all of this, for those who are in a position to buy right now, there is a lot of choice, lower prices and improving mortgage rates.