The interest rate induced slump in Toronto region real estate hit the new construction home market in August with condo and single-family housing sales plunging more than 80 per cent below last year’s levels and falling well beneath the 10-year averages.
Prices, however, continued to rise, according to a report from the Building Industry and Land Development Association (BILD) on Thursday.
The benchmark price of a single-family home, a category that includes detached, semi-detached and townhouses, hit about $1.86 million, 22 per cent above August 2021.
Condo prices jumped 11 per cent year over year, to a benchmark of nearly $1.19 million.
Low inventory and continuing constraints in the housing supply are maintaining high home prices, despite a pause in demand as consumers grapple with the rising cost of borrowing, said BILD CEO David Wilkes.
“In other markets where you have a weakening of demand, you often see prices come down. You’re not seeing that in the housing market because of the recognition that supply will have to increase in the medium and long-term to balance the market,” he said.
The 533 condos that sold in August represented an 83 per cent year-over-year drop and was 61 per cent below the 10-year average.
Only 89 single-family homes sold last month — 86 per cent below last August, and 87 per cent below the 10-year average. That was even less than the 97 single-family homes that sold in July, the first time since 2000 that fewer than 100 houses sold.