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CTV News
3 days ago
- Business
- CTV News
Seventh consecutive month of record all-time lows for new home sales in GTA eclipses 1990s downturn
New home sales in the GTA hit a seventh consecutive month of record all-time lows according to a new report, eclipsing the 1990s downturn. The report from the Building Industry and Land Development Association (BILD) said that there were 310 new home sales in April in the region, which is down 72 per cent from April 2024 and 89 per cent less than the 10-year average. 'Historically, new home sales for a typical April in the GTA would be 2,750 units based on the previous 10-year average,' it read. Condos, including units in low, medium and high-rise buildings, accounted for just 105 units sold in the GTA in April, down 80 per cent from the same time last year and 94 per cent below the 10-year average. 'April 2025 new home sales across the GTA have extended the slowest period of sales on record,' said Edward Jegg, the research manager at Altus Group, which is BILD's source for new home market data. 'Buyers crave predictability and the swirling uncertainty around the impact of possible tariffs is depriving would-be purchasers of the confidence they need to move ahead.' As for single-family home sales, the report says there were only 205 such sales in the GTA in April, down 66 per cent from last year. 'The government has reaped billions in additional tax revenue on new homes by not indexing GST price rebate thresholds since 1991 and instead has created a new mechanism that will apply to very few purchasers,' Justin Sherwood, BILD's senior vice-president of communications, research, and stakeholder relations, said in reference to proposed measures from the federal government to provide GST relief to first-time new home buyers. 'In order to have maximum impact and address the effects of GST/HST on eroding home affordability, the federal government must broaden the scope of the GST (HST) measures to all new home purchases.' The report also said that benchmark prices decreased in April for both single-family homes and condos in the GTA compared to the previous year. The benchmark price for new condos was $1,019,120, down 3.6 per cent, while the benchmark price for new single-family homes was $1,530,126, down 5.4 per cent.
CTV News
3 days ago
- Business
- CTV News
Seventh consecutive month of record all-time lows for new home sales in GTA eclipses 1990s downturn
New home sales in the GTA hit a seventh consecutive month of record all-time lows according to a new report, eclipsing the 1990s downturn. The report from the Building Industry and Land Development Association (BILD) said that there were 310 new home sales in April in the region, which is down 72 per cent from April 2024 and 89 per cent less than the 10-year average. 'Historically, new home sales for a typical April in the GTA would be 2,750 units based on the previous 10-year average,' it read. Condos, including units in low, medium and high-rise buildings, accounted for just 105 units sold in the GTA in April, down 80 per cent from the same time last year and 94 per cent below the 10-year average. 'April 2025 new home sales across the GTA have extended the slowest period of sales on record,' said Edward Jegg, the research manager at Altus Group, which is BILD's source for new home market data. 'Buyers crave predictability and the swirling uncertainty around the impact of possible tariffs is depriving would-be purchasers of the confidence they need to move ahead.' As for single-family home sales, the report says there were only 205 such sales in the GTA in April, down 66 per cent from last year. 'The government has reaped billions in additional tax revenue on new homes by not indexing GST price rebate thresholds since 1991 and instead has created a new mechanism that will apply to very few purchasers,' Justin Sherwood, BILD's senior vice-president of communications, research, and stakeholder relations, said in reference to proposed measures from the federal government to provide GST relief to first-time new home buyers. 'In order to have maximum impact and address the effects of GST/HST on eroding home affordability, the federal government must broaden the scope of the GST (HST) measures to all new home purchases.' The report also said that benchmark prices decreased in April for both single-family homes and condos in the GTA compared to the previous year. The benchmark price for new condos was $1,019,120, down 3.6 per cent, while the benchmark price for new single-family homes was $1,530,126, down 5.4 per cent.
Yahoo
24-05-2025
- Business
- Yahoo
April New-Home Sales Unexpectedly Rise Despite Price Increase
New home sales in the US unexpectedly rose in April despite an increase in median prices, government
Globe and Mail
24-05-2025
- Business
- Globe and Mail
US New Home Sales Surge Amid Price Cuts but Future Remains Uncertain
New U.S. single-family home sales unexpectedly surged by 10.9% in April, reaching a three-year high of 743,000 units annually, driven primarily by builders cutting prices to lure cautious buyers. This robust figure, however, was tempered by significant downward revisions for February and March, raising questions about the underlying strength of the housing market amid continued economic uncertainty and elevated mortgage median price for new homes fell 2% from last year to $407,200, highlighting builders' aggressive incentives aimed at countering the effects of rising mortgage costs, now nearing 7%. Market conditions remain challenging due to lingering consumer apprehension triggered by President Trump's escalating trade conflicts, including threats to impose steep tariffs on the European Union and Apple's foreign-manufactured iPhones, adding further volatility to an already fragile economic landscape. Market Overview: New home sales jumped 10.9%, defying expectations Builders aggressively lowered prices amid high mortgage rates Persistent economic uncertainty due to trade tensions Key Points: Median home price dropped 2% year-over-year to $407,200 Mortgage rates approaching 7% create affordability pressures High inventory levels reminiscent of pre-2008 housing crisis Looking Ahead: Continued builder incentives expected as inventories remain high Further market volatility anticipated amid ongoing trade tensions Housing market likely to face prolonged softness through 2025 Bull Case: New single-family home sales surged 10.9% in April to a seasonally adjusted annual rate of 743,000, the highest pace since February 2022, indicating some resilience in buyer demand despite economic headwinds. Builders are actively offering price cuts and incentives, such as mortgage rate buydowns, to attract buyers, which helped reduce the inventory of available new homes to an 8.1 months' supply in April, down from 9.1 months in March. Nearly half of all new homes sold in April were priced under $400,000, a higher share than in recent years, suggesting builders are successfully targeting more affordable segments of the market. Mortgage rates, while still elevated, are expected by some analysts (like Fannie Mae) to potentially move lower throughout 2025, which could provide a boost to home sales if economic uncertainty from trade policies subsides. Despite economic jitters and tariff concerns, if mortgage rates stabilize or decline further, and builders continue strategic pricing, the housing market could see more sustained activity. Bear Case: The April surge in new home sales was accompanied by significant downward revisions for February and March sales, raising questions about the underlying strength and consistency of the housing market recovery. The median price for new homes fell 2% year-over-year to $407,200, indicating that builders are sacrificing margins to move inventory in a challenging environment of high mortgage rates (nearing 7%) and persistent economic uncertainty. Unsold new home inventory remains near its highest level since 2007, signaling a persistent oversupply risk that could force builders to continue aggressive pricing or scale back new construction. Existing-home sales dropped in April, and the total supply of existing homes hit a five-year high, indicating broader market weakness and affordability challenges for buyers. Ongoing economic uncertainty, particularly from President Trump's escalating trade conflicts and tariff threats, is negatively impacting consumer sentiment and adding volatility to borrowing costs, which could dampen housing demand. Analysts remain skeptical about sustained growth, warning that the recent gains could be short-lived due to structural pressures from high interest rates and uncertainty around federal fiscal policy, with the market likely to face prolonged softness through 2025. Despite April's uptick, unsold home inventory remains near the highest level since 2007, indicating persistent oversupply risks. Builders, cautious about breaking ground on new projects, are expected to further scale back, given the bleak outlook for sustained demand. This cautious stance reflects broader economic anxieties linked to ongoing tariff threats and fiscal policies that may further destabilize consumer confidence and borrowing remain skeptical about sustained growth in the housing sector, warning that recent gains could prove short-lived due to structural pressures from high interest rates and uncertainty around federal fiscal policy. The market outlook remains subdued, with builders likely forced into continued aggressive pricing strategies as consumer sentiment struggles to stabilize amid turbulent economic conditions. This article contains syndicated content. We have not reviewed, approved, or endorsed the content, and may receive compensation for placement of the content on this site. For more information please view the Barchart Disclosure Policy here.
Zawya
23-05-2025
- Business
- Zawya
US new home sales unexpectedly rise in April
Sales of new U.S. single-family homes unexpectedly increased in April as builders lowered prices to lure buyers, but rising mortgage rates and an uncertain economic outlook remain constraints for the housing market. New home sales surged 10.9% to a seasonally adjusted annual rate of 743,000 units last month, the Commerce Department's Census Bureau said on Friday. The sales pace for March was revised down to a rate of 670,000 units from the previously reported 724,000 units. Economists polled by Reuters had forecast new home sales, which make up about 14% of U.S. home sales, declining to a rate of 693,000 units. (Reporting by Lucia Mutikani; Editing by Mark Porter)
