Completely rewrite the following article in a fresh and original style. Ensure the new content conveys the same sentiment and message as the original. The rewritten article should:
- Start with a compelling introduction that hooks the reader (do not label this section).
- Maintain any lists and points as they are, using numbering and bullet points where necessary. Rewrite the explanations and discussions around these points to make them fresh and original. Ensure the lists are formatted correctly with proper numbering or bullet points.
- Organize the content into clear, logical sections. Subheadings are not mandatory. Each section should have a subheading only if it enhances readability and comprehension.
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End with a strong conclusion that summarizes the key points and provides a closing thought or call to action (do not label this section).
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Ensure it is formatted properly with adequate line spacing
Make sure the article flows coherently, is engaging, and keeps the reader interested until the end. Reorganize and structure the content efficiently to enhance readability and comprehension. Use varied sentence structures and vocabulary to avoid monotony. Avoid directly copying any sentences or phrases from the original content. Here is the original content:
Greater Toronto real estate can’t catch a break these days. The latest data from developer intelligence firm Altus Group and the regional developer group IMAGE GTAshows Toronto new home prices slipped lower in May. Weak demand at this price level has pushed sales this year to the weakest level on record. It’s not for a lack of inventory, which has climbed to the highest level for the month in nearly a decade.
Greater Toronto New Home Prices Continue To Fall
Greater Toronto new home prices slipped further last month. The benchmark, or typical, price of a single-family home fell to $1.61 million in May, down 7% from a year before. Condos did a little better at a benchmark price of $1.04 million, 5% lower over the same period. It’s still not exactly affordable, but both segments have dropped nearly 30% since hitting the peak a few years prior.
Greater Toronto New Home Benchmark Price
The price of a benchmark new home across Greater Toronto.
Source: Altus Group.
Greater Toronto New Home Sales Have Never Been Worse
Demand for new homes across Greater Toronto at this price has never been weaker. New home sales fell 71% to just 936 in May, bringing year-to-date (YTD) sales 46% lower, with just 4,686 units sold this year. According to BILD GTA, YTD sales have fallen to the lowest level on record—30% lower than the previous low set in 2009.
Greater Toronto New Homes Sales On Track For Weakest Year Ever
Greater Toronto new home sales for the month and year to date for May.
Source: Altus Group.
Breaking down the inventory, weakness was consistent across the region. Sales of single-family homes fell 65% from last year, while condos dropped 75% over the period.
Greater Toronto New Home Inventory Climbs To Multi-Year High
By itself, sales don’t tell the whole picture—low inventory could restrict the number of sales. That’s not the case across Greater Toronto, where inventory has reached a multi-year high. Total new home inventory climbed 33% over the past year to 20,427 units as of May. It’s the most inventory reported in May going back to 2016, nearly a decade ago and before the city’s prices made its rapid climb.
Considering the population growth rate, it’s surprising to see such soft demand for new homes. Though it aligns with the rising apartment vacanciesnow higher than pre-pandemic levels. Either Greater Toronto’s population estimates have been generous, or young adults have reached the limit on how much they can pay.
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