The most recent Altus Group statistics released by BILD indicate that in the Greater Toronto Area, we are still behind demand when it comes to the supply of new homes available. The supply increased in October, but is still well below what is considered viable in the face of demand. At the end of October, there were only 9,308 multi-family homes and 3,192 single-family homes available across the GTA.
Condos, in particular, are coveted by new home buyers. In October, 91 per cent of new homes sold were multi-family homes. Condo sales that month were 81 per cent above the 10-year average, as well as the highest ever recorded for an October. Over the past few years, condominium sales in the GTA have broken long-standing records and continue to take centre stage in the new home, and even resale marketplace.
Why are we so far behind in supply? Blame the provincial government, which is lagging in approving existing land for development. Developers and builders are building as fast as they can, but bureaucratic red tape poses continual hold-ups in getting land approved for residential development.
The moral of the story is to get into homeownership as soon as you can, while mortgage rates are still low – and condominium is likely the way to go. Let’s hope the supply-demand scenario changes in 2018!