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The Greater Toronto Area (GTA) new home market rebounded in April as sales levels started to return to “more traditional” levels, according to Altus Group and the Building Industry and Land Development Association.

The region saw a total of 2,391 new home sales in April, a significant increase from the 1,277 transactions in March. This is despite activity decreasing by 35% annually and remaining 30% below the market’s 10-year average for the month.

A major driver of this recovery was the 1,064 single-family home sales in April, representing an 81% year-over-year increase that pushed activity up to just 16% below the 10-year average.

This more than made up for the 1,327 condo apartment sales during that month, which fell by 57% from April 2022 and continued to hover at 39% below the 10-year average.

“GTA homebuyers returned to the market driving new home sales higher,” said Edward Jegg, research manager at Altus Group. “The fundamentals had pointed to a rebound in April and that strength is expected to continue through the spring market.”

Total new home active inventory stood at 14,928 units, comprising 13,588 condo apartment units (12 months of supply) and 1,340 single-family units (4 months).

However, while “inventory numbers have moved closer to balanced market requirements of 9-12 months of inventory, it is too early to suggest required inventory levels have resulted in a sustained balanced market,” BILD said.

Benchmark prices declined across all residential assets, settling at $1.768 million for single-family homes (down by 1.1% annually) and at nearly $1.103 million for condo apartments (down by 7.3%).

Source: Canadian Mortgage Professional