"The latest interest rate hikes have pushed many buyers to the sidelines again as affordability continues to deteriorate," says a new report detailing new home sales in the GTA.High interest rates and deteriorating affordability have pushed prospective homebuyers back onto the sidelines across the Greater Toronto Area., 1,190 new homes were sold across the GTA in July, an 18% annual decline.
"GTA new home sales slumped in July," said Edward Jegg, Research Manager at Altus Group. "The latest interest rate hikes have pushed many buyers to the sidelines again as affordability continues to deteriorate." Meanwhile, sales of new single-family homes, including detached, linked, and semi-detached houses, as well as townhouses, soared, rising 281% year-over-year in July. However, last summer marked a significant cooling of the market as buyers began to react to rising interest rates. As such, the July 2023 sales figure was 51% below the 10-year average.