New home sales in the Greater Toronto Area dropped a staggering 60% year-over-year in June, says a new Altus Group report commissioned by BILD.

The Toronto Star reported on the Altus report’s details.

Only 510 new homes were sold in June—well below the 10-year average of 2,801. New-build condominium sales nosedived 67% year-over-year, and 89% below the 10-year average to 217.

Single-family home sales also took a hit, falling 53% from a year earlier to 293 units—62% below the historical norm.

“It’s been several months now that we’ve been seeing record-low sales,” said Dave Wilkes, president and CEO of BILD, told the Star. “The industry really has stalled.”

Wilkes cited unaffordable building costs—approximately $1.5 million for single-family homes and $1 million for condos—and low consumer confidence due to economic uncertainty as the main reasons behind the slowdown.

“Home-building costs are too high for the market to absorb,” he said, adding that despite some decreases in material, labour, land, and borrowing costs, taxes remain a key barrier to affordability.

“They’re just not selling,” Wilkes said.

Despite the challenging environment, Wilkes noted, current conditions could benefit buyers.

“If you are in the market, conditions are favouring purchasers right now,” he told the Star. “There is inventory available. The financing rates are low. Builders are looking to move that inventory, so there is that opportunity.”

Inventory has reached record levels, with 22,254 new homes on the market, including 16,696 condo units and 5,558 single-family homes. BILD is advocating for a tax rebate program to reduce buyer costs and stimulate demand.

This year is shaping up to be the lower number of GTA new home sales in the decades since Altus started tracking such activity, the company said in a research note posted on BILD’s website in June.

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