Low-rise market suffers from low supply
GREATER TORONTO, Aug. 21, 2012 /CNW/ - New home buyers in the GTA purchased 2,266 new homes and condominiums this July, the Building Industry and Land Development Association (BILD) reported today.
According to RealNet Canada Inc., BILD's official source of new home market intelligence, the 1,415 new condominiums sold across the GTA in July are slightly more than the long-term average for that month. Meanwhile, sales of new low-rise homes have dropped to less than half of the long-term average at 851.
"The Province of Ontario's recent emphasis on intensification has resulted in a shortage of land supply, bringing inventory levels in the low-rise sector to record-low levels," explained BILD President and CEO Bryan Tuckey. "You can't sell what you don't have, and while the high-rise sector is there to help satisfy demand, new home buyers in the GTA end up suffering from a lack of options when it comes to housing type."
The lack of new low-rise housing supply in the market has reduced detached, semi-detached and townhome sales to just 37 per cent of total new homes sold in the GTA this July.
The RealNet New Home Price Index currently shows a price gap of more than $175,000 between high-rise and low-rise, with the average cost of a low-rise home in the GTA up to $613,090.
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Source: RealNet Canada Inc.
With more than 1,375 members, BILD, formed through the merger of the Greater Toronto Home Builders' Association and Urban Development Institute/Ontario, is the voice of the land development, home building and professional renovation industry in the Greater Toronto Area. BILD is proudly affiliated with the Ontario and Canadian Home Builders' Associations.
SOURCE: Building Industry and Land Development AssociationFor further information: