The market for new homes in the Greater Toronto Area is slowing way down as supply increases and fewer people are buying, according to a new report.

The latest market snapshot from the Building Industry and Land Development Association (BILD) showed that there were just 567 new home sales in January, down 81 per cent from a year ago, and 70 per cent below the 10-year average.

It was the lowest number of new homes sold in January since Altus Group began tracking in 2000.

“New home sales started 2023 on a very quiet note,” said Edward Jegg, research manager at Altus Group. “Developers, particularly in the condominium apartment sector, continue to bring new units to the market though buyers remain largely hesitant.”

According to the report, just 186 single-family homes, including detached, linked, and semi-detached houses and townhouses (excluding stacked townhouses), were sold in January, down 70 per cent from January 2022 and 78 per cent below the 10-year average.

Condominium apartments tallied 381 units sold in January—the lowest level for January in 14 years.

“We are seeing a modest increase in inventory, due to prospective home buyers sitting on the sidelines as a result of current monetary policy,” said Dave Wilkes, BILD President & CEO. “But given the rate at which the population of the GTA and the province is growing, we need to build 1.5 million new homes in Ontario in a decade. We are committed to working with all levels of government to implement the changes necessary to meet this ambitious goal.”

The benchmark price for a new single-family home of any type is now $1,730.350, off 2.3 per cent from a year ago while the condominium apartment priced deceased 2 per cent to $1,127,192.