Despite the increase in new home sales in the Greater Toronto Area in June, the Building Industry and Land Development Association (BILD) announced that sales had decreased compared to the average of the past ten years.

According to BILD, there were 2,526 new home sales in the GTA in June, a 32 percent increase from last June, but 30 percent lower than the 10-year average.

Dave Wilkes, the president and CEO of BILD, said, “There is no doubt that the recent increase in interest rates is causing some potential new home buyers to hesitate.”

He added, “Higher interest rates are also delaying the much-needed addition of supply to the market, as pre-construction home sales are a critical element in financing new housing.”

Wilkes continued, “When the Bank of Canada continues to raise interest rates, it exacerbates the housing supply and affordability crisis in Canada.”

According to BILD, 1,957 condominium units were sold last month, representing an 11 percent increase from June 2022, but a 21 percent decrease from the 10-year average.

Additionally, 569 detached homes were sold in June, a 256 percent increase from June 2022, but 49 percent lower than the 10-year average.

The benchmark price for a new condominium was $1,090,484 in June, down 8.4 percent from last year, while the price of a new detached home was $1,716,467, down 6.9 percent from last year.