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February new home sales in the Greater Toronto Area (GTA) were the lowest on record, plunging 50 per cent from last year and 84 per cent below the 10-year average, according to a homebuilding industry group.
A statement by the Building Industry and Land Development Association (BILD) says there were only 400 new home sales last month, which is substantially below the 10-year average of 2,570 units sold.
The impact was most felt in the condo sector, where sales fell 62 per cent year-over-year and 90 per cent below the 10-year average. For single-family homes, sales slid 38 per cent from February 2024 and 75 per cent below the 10-year average.
“New home sales across the GTA in February 2025 remained at rock-bottom levels,” Edward Jegg, research manager at Altus Group, which provided the data to BILD, said in the announcement. Economic uncertainty related to U.S. tariffs have become the latest factor to fuel the doubts of potential home buyers, he explained.
BILD’s report continues a streak of bad news for GTA new home sales. In December, it said new home sales fell to a near four-decade low, ending a historically bad year that marked the worst annual total sales since 1990.
A month later, it reported new home sales fell 40 per cent year-over-year and were 77 per cent below the 10-year average.
To stimulate activity, BILD pointed to the need to reduce construction costs and development charges.
Price data, Simcoe County data
The benchmark price for GTA single-family homes and condos also decreased in February compared to last year.
For new single-family homes, the benchmark price was $1,536,734, down 2.9 per cent. New condo prices fell by 2.4 per cent to $1,021,760.
Total new home remaining inventory increased slightly compared to January to 21,863 units. BILD broke it down into 16,995 condo units and 4,868 single-family homes.
The total is a combined inventory level of 14 months, based on average sales for the past 12 months.
New for 2025, sales in the rapidly growing region of Simcoe County are now reported. This is the region directly north of the GTA, encompassing Bradford-West Gwillumbury north through the Alliston (New Tecumseth), Barrie, Orillia and Midland areas.
The region saw 63 total new home sales in February: 56 single-family home sales and seven condominium apartments.
The weighted average price for new condos in Simcoe County was $839,074; single-family homes was $1,126,539.
Stopping a ‘cost to build’ crisis
As new property sales continue to languish, BILD said easing government policies could raise the levels of transactions and starts.
Justin Sherwood, BILD’s senior vice-president of communications, research and stakeholder relations, welcomed announcements on exempting new homes from the federal portion of the HST which have been made by political parties during the federal election.
“To be successful in addressing affordability these policies must apply to the largest number of buyers, have price thresholds that are reflective of the GTA market reality and be matched by the provincial government,” he said.
Sherwood also highlighted the need for policies that reduce municipal fees and charges, such as for development.
“Make no mistake, we are at the point of a serious ‘cost-to-build’ crisis and we risk an entire industry shutting down with great and lasting consequences to housing supply and affordability in the GTA.”
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