The GTA new home market saw a loss of momentum this summer, amid soaring lending rates and low inventories, making it the second-lowest August for new home sales since 2000. 

The report — released by the Building Industry and Land Development Association (BILD) with data from the Altus Group — found that the market was considerably sluggish when compared to the 10-year average. 

According to the report, there were 711 new home sales this past August, which was up 52 per cent from August 2022 and 63 per cent below the 10-year average. It was the second-lowest August for new property sales since the Altus Group began tracking sales in 2000.

"While August is typically a slower buying month, the return of the interest rate hikes further dampened GTA new home sales," said Edward Jegg, Research Manager at Altus Group.

Home prices are set to plunge across much of Ontario this fall https://t.co/BKMn6k9nyr #Ontario #OntarioRealEstate

— blogTO (@blogTO) September 6, 2023

Condominium apartments, including units in low, medium, and high-rise buildings, stacked townhouses and loft units accounted for 443 units sold in August, which is up 15 per cent from August 2022 and 66 per cent below the 10-year average. 

There were also 268 single-family home sales in August, up 227 per cent from August 2022 and 56 per cent below the 10-year average. 

Honestly I'm not surprised😳https://t.co/FgHOJC5hOK #Ontario #OntarioHousingMarket #OntarioRealEstate

— blogTO (@blogTO) September 17, 2023

Total new home remaining inventory decreased compared to the previous month, with 16,139 units.

This included 14,242 condominium apartment units and 1,897 single-family lots, which represent 13.7 months and 4.5 months of inventory respectively, based on average sales for the last 12 months. According to the report, a balanced market typically has nine to 12 months of inventory. 

Benchmark prices also slightly increased in August when compared to the previous month. The benchmark price for new condominium apartments was $1,089,012, which was down 8.5 per cent over the last 12 months. 

Toronto's housing market has cooled down significantly this summer but we'll see if it lasts https://t.co/XhpOqngv4R #Toronto #RealEstate

— blogTO (@blogTO) July 5, 2023

The benchmark price for new single-family homes was $1,726,092, which was down 7.3 per cent over the last 12 months.

"Interest rates remain a barrier for prospective new home buyers in the GTA," said Justin Sherwood, SVP Communications & Stakeholder Relations at BILD.

"However, the relatively strong sales of single-family homes in August demonstrate that municipalities need to enable the building of a mix of housing types to make sure families can find the homes they need when more typical market conditions return."