According to a recent report, new condo sales in the Greater Toronto and Hamilton Area (GTHA) have experienced a significant decline of 81 per cent in the third quarter of 2024.
The report, released by the Building Industry and Land Development Association (BILD) and Altus Group, revealed that only 2,886 new condos were sold in the GTHA during the third quarter of 2024. This is a sharp decrease from the 15,169 units sold during the same period in 2023.
The decline in new condo sales can be attributed to a number of factors, including the impact of the COVID-19 pandemic on the real estate market. The report also noted that the introduction of new government policies, such as the foreign buyer tax and stricter mortgage rules, have contributed to the decrease in sales.
In addition, the report highlighted that the average price of a new condo in the GTHA has increased by 10 per cent, reaching $1,055 per square foot. This is the highest average price ever recorded for new condos in the GTHA.
Despite the decline in sales, the report also showed that there is still a high demand for new condos in the GTHA. There were 22,652 new condo units available for sale in the third quarter of 2024, which is a 10 per cent increase from the same period in 2023.
Bryan Tuckey, President and CEO of BILD, expressed concern over the decline in new condo sales, stating that it could have a negative impact on the economy and the housing market in the GTHA. He also emphasized the need for government policies that support the development of new housing in the region.
In conclusion, the report highlights the challenges faced by the new condo market in the GTHA, including the impact of the pandemic and government policies. It also emphasizes the importance of addressing these challenges in order to support the growth and stability of the housing market in the region.
