New construction home sales hit another record low

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Ontario Construction News staff writer

New construction sales in the Toronto region hit a new historic low in September with climbing interest rates and economic uncertainty impacting homebuyers and reducing sales inventory.

Only 334 new houses and condos sold last month, a 96 per cent year-over-year plunge in the single-family home category. The 289 condos that sold in September was an 89 per cent decline, according to the Building Industry and Land Development Association (BILD).

September’s 45 single-family home sales — a category that includes detached, semi-detached and townhouses — is the lowest number since Altus Group began tracking home construction in 2000 – the third consecutive month of record lows with 97 single-family sales in July and 82 in August.

Prices of pre-construction and newly built homes continued to rise on an annual basis, however, and the homebuilders’ association offered little hope for a reversal of the upward trajectory.

New construction single-family homes are down 68 per cent in 2022 and condo sales have dropped 21 per cent compared to last year.

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