Error: Target location is not a valid Gatsby site

When creating a new site and you get this error: Target location is not a valid Gatsby site! Gatsby dependency must be installed;

Please make sure you follow the steps for creating a site from a repository below:

• Create a site from a repository (Ensure the base directory points to the directory in your repository that contains the gatsby-config.js file for your site as shown in Step 3) 
  
  
• Also, check out our tutorial on deploying your first Gatsby site.