In comparison to December, the price of new construction homes in the Toronto region was slightly lower in January. This was due to the fact that the number of condos sold reached an all-time high, while the availability of single-family homes continued to decrease.

According to the data provided by the Home Builders Association, the median price of a single-family home in January rose to $1.77 million, which represents a year-over-year increase of 30 percent from the previous month's figure but a decrease of nearly $60,000 from the previous December figure.

According to a report that was released on Thursday by the Building Industry and Land Development Association (BILD), the number of townhomes, semi-detached, and detached houses that were sold in December represented a 67 percent annual decrease from January 2021, and it was 33 percent lower than the 10-year average.

In the meantime, the launch of nine new condominium projects led to sales of a record number of 2,274 highrise, midrise, and stacked townhouse units in the month of January. This figure is more than double the 10-year average and 232 percent higher than sales in the same month the previous year.

According to the findings of the study, the average cost of a recently constructed condo has risen to $1.15 million, representing a year-over-year increase of approximately 13 percent from the previous figure. The benchmark price that was established in December is approximately $33,000 lower than this price.

At the end of the previous month, there were only 550 single-family homes that were either in the pre-construction, construction, or recently built stages that were available on the market. It was a significant decrease from the 15,000 homes per month that was typical during the decade spanning from the 2000s to the 2009s. This represented a drop of approximately 10% from the levels that existed before the pandemic.

According to BILD senior vice-president Justin Sherwood,“What we’re seeing is smaller and smaller releases on single-family (units) just based on the availability of serviced land in the GTA.” Although there will be some new supply in the spring, those smaller project releases are likely to continue as “land supply is tight just about everywhere,” he said. All you have to do is take a look at the number of single-family homes that are currently on the market. It's 550. Ten years ago, there were 5,000 of them. Sherwood stated that there were over 20,000 in any given month when he worked there twenty years ago. In general, the supply is only a third of what it should be in aggregate, and it does not even exist for single-family homes.

Since December, the inventory of condos available for purchase has seen a slight increase thanks to new project launches in the past month. According to Ed Jegg, who is in charge of the analytics team at Altus Group, which is the company that compiles the industry statistics, this still only leaves 2.9 months of supply based on the average sales over the past 12 months.