Above-average year for GTA new-home sales

GREATER TORONTO, Jan. 29, 2016 /CNW/ - Strong demand for new homes in the GTA resulted in the third-highest sales year in the past decade, the Building Industry and Land Development Association (BILD) announced today.

In 2015 there were 41,295 new homes purchased in the GTA according to RealNet Canada Inc., BILD's official source for new-home market intelligence; that is a 2 per cent increase from 2014 when 40,324 new homes were purchased.

Total new-home sales in 2015 were up 13 per cent from the 10-year average of 36,543. Over the last decade, only 2011 and 2007 recorded more new-home sales. In 2011 there were 46,304 new homes purchased and in 2007 there were 43,391.

"This region continues to grow by up to 100,000 people and 50,000 jobs every year," said BILD president and CEO Bryan Tuckey. "The home building and land development industry supports that growth by building quality complete communities so that people have places to live and work."

There were 21,658 new high-rise condominium units purchased in 2015, down 2 per cent from 2014 when 22,176 were sold. However, the 2015 total is 11 per cent above the 10-year average of 19,457 units.

On the low-rise side of the market, which includes detached, semi-detached and townhomes, 19,637 new homes were purchased in 2015.  That is up 8 per cent from 2014 when 18,148 sales were recorded, and it is 15 per cent above the 10-year average of 17,085.

Prices of new homes in the GTA reached new heights in 2015.

The average price per square foot of new high-rise homes hit a record-breaking high of $584 at the end of 2015, a 5 per cent increase from December 2014 when the average was $557 per square foot.

The average price of a new high-rise condo unit in the GTA was $453,083 at the end of 2015, down from $454,476 the year prior. However, the slight price decrease was due to the size of units getting smaller. In December 2015 the average size of a new condo suite was 775 square feet, compared to the December 2014 average of 816 square feet.

"The industry continues to find new and innovative ways to keep the price of new homes within reach for first-time buyers," Tuckey said. "By maximizing living space and reducing the overall suite size, our members successfully kept the average price of a high-rise home stable over the last 12 months."

Meanwhile the average price of new low-rise homes reached $829,766 in December 2015, an all-time high and an 18 per cent increase from a year ago when the average price was $705,813.

The price of a new single-detached home in the GTA is just under a million dollars. The average price of a detached home was $991,156 in December 2015, up 18 per cent from December 2014 when the average was $840,719.

"The escalating price of new low-rise homes is a function of supply and demand," Tuckey said. "While demand has remained strong, the GTA faces a constrained supply of new low-rise homes coming to market due to a lack of serviced developable land. This significantly affects housing choice for new-home buyers."

Sales in December were in line with the 10-year average with 1,736 new homes sold. There were 658 low-rise sales and 1,078 high-rise sales throughout the GTA. For a regional breakdown, refer to the table below.

December New-Home Sales by Municipality:

December '15

Low Rise

High Rise

Total

Region

2013

2014

2015

2013

2014

2015

2013

2014

2015

Durham

117

155

105

0

37

47

117

192

152

Halton

31

53

82

80

78

50

111

131

132

Peel

280

215

199

30

59

30

310

274

229

Toronto

20

83

34

933

688

783

953

771

817

York

234

522

238

118

90

168

352

612

406

GTA

582

1,028

658

1,161

952

1,078

1,743

1,980

1,736

Jan-Dec

12,093

18,148

19,637

15,815

22,176

21,658

27,908

40,324

41,295

Source: RealNet Canada Inc.

With more than 1,450 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.

A statistical backgrounder is available for viewing.

SOURCE Building Industry and Land Development Association

For further information: For additional information or to schedule an interview, contact Andrei Zaretski, Manager of Marketing and Media Relations, at 416-391-3450 or 416-843-4898 or azaretski@bildgta.ca.

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