海角社区官网

Overall, 1,139 new homes were sold last month, a 46 per cent drop compared to June 2023 and 59 per cent less than the 10-year average, the report said.听

In total, there were 3,097 year-to-date sales, compared to 7,509 sales by the same time last year.

Justin Sherwood, the senior vice-president of communications at BILD, said building costs 鈥� including labour, materials, land prices and municipal fees 鈥斕齝ombined with slow approvals have led to limited affordability.

鈥淲hat we’re seeing today in terms of sales is a direct reflection of the interest rates impacting the ability for a homeowner to carry those costs,鈥� he said.听

鈥淲e have price stickiness because inflation and input costs have gone up, and then you鈥檝e got consumers sitting on the sidelines waiting for interest rates to come down.鈥�

Building costs have skyrocketed in just a few years, Sherwood explained.

From the first quarter of 2019 to the last quarter of 2023, construction costs for single-family homes in the 海角社区官网area increased 98.3 per cent and construction costs for condo apartments have increased 74.1 per cent, Sherwood said, citing an Altus Group report based on Statistics Canada data.

While interest rates remain high, the Bank of Canada cut its key overnight rate on June 5 to 4.75 per cent, the first cut in more than four years.听Some economists, including听,听anticipate it will drop to four per cent by the end of the year.

This June, condo sales in particular took a hit as sales dropped 61 per cent compared to last June, with just 732 sales. Out of those, 589 were pre-construction sales, Altus Group data shows.

New single-family home sales, meanwhile, increased 5 per cent year-over-year to 607 sales.

The decline in听pre-construction and new-build condo sales echoes the resale market, where听the听海角社区官网Regional Real Estate Board (TRREB) reported last week condo sales in the GTA听were down by 28 per cent听in June听compared to the same time last year.

TRREB president Jennifer Pearce said听in a statement that homebuyers appear to need听many more interest rate cuts before getting back into the market.

Meanwhile, housing starts in the 海角社区官网area plunged by 60 per cent听that same month,听compared to June 2023, the听Canada Mortgage and Housing Corp. (CMHC) reported. The report said the decline was due, in large part, to a sharp drop in multi-unit construction, which includes condos, apartments, townhomes and semi-detached homes.

The decline was expected due to the higher interest environment catching up to developers, CMHC鈥檚 lead economist for the 海角社区官网market, Jordan Nanowski, told the Star last week.