GTA new detached homes eclipse $1 million mark

GREATER TORONTO, April 21, 2016 /CNW/ - The average price of new detached homes in the Greater Toronto Area has surpassed $1 million for the first time, the Building Industry and Land Development Association (BILD) announced today.

As of March 31, the average price of new detached homes available for sale in the GTA was $1,045,659 according to Altus Group, BILD's official source for new-home market intelligence.

The new detached home average price has grown by 21 per cent in 12 months and in the last decade it has more than doubled. In March 2015 the average was $861,848 and in March 2006 it was $439,294.

BILD President and CEO Bryan Tuckey attributes much of the dramatic price increase to the supply of new housing not keeping pace with demand due to government intensification policies and a lack of serviced developable land.

"The demand for detached homes is far outpacing supply as the GTA's population continues to grow," said Tuckey. "Our region has record-low levels of new detached homes available for sale, which drives up prices and reduces housing choice for consumers."

There were 905 detached homes sold in March, down nine per cent from March 2015 and three per cent below the 10-year average. As of March 31, across the entire GTA, there only 1,634 new detached homes available for sale in remaining inventory. In March 2006 there were 11,149 detached homes in remaining inventory.

Tuckey said the home building and land development industry continues to meet the Province's intensification requirements and is building more townhomes and high-rise condos, but the demand for new detached homes remains strong.

The average price for low-rise homes overall, which includes townhomes and semi-detached homes as well as detached houses, also set a new record when it reached $849,312 in March. This is a 15 per cent increase from March 2015.

The average price of a new townhome reached $672,419 while new semi-detached homes averaged $612,487.

"New low-rise homes are being purchased faster than they can be brought to market," Tuckey said. "As long as demand for low-rise homes continues to outpace supply, we will continue to see rapid price growth."

There were 2,032 low-rise homes sold in March, an increase of 16 per cent from March 2015 and 26 per cent more than the 10-year average. As of March 31 there were only 3,036 homes in remaining inventory, a new record low. Ten year ago there were 16,757 low rise homes in remaining inventory.

With many first-time buyers unable to afford a low-rise home, the high-rise market provides a more affordable option due to its more moderate price increase.

The average price of a new high-rise home increased two per cent from March 2015 to $459,231. On a price per square foot basis, prices increased four per cent to $582.

The high-rise market recorded 1,560 new home sales in March, down 22 per cent from March 2015 and 12 per cent below the 10-year average. A detailed sales table broken down by region is available below.

Meanwhile high-rise inventory decreased to 18,280 across the GTA.

March New-Home Sales by Municipality:

March '16

Low Rise

High Rise

Total

Region

2014

2015

2016

2014

2015

2016

2014

2015

2016

Durham

263

253

264

9

10

69

272

263

333

Halton

187

346

161

119

110

55

306

456

216

Peel

558

495

547

38

156

128

596

651

675

Toronto

67

53

145

2,143

1,509

1,013

2,210

1,562

1,158

York

587

605

915

226

220

295

813

825

1,210

GTA

1,662

1,752

2,032

2,535

2,005

1,560

4,197

3,757

3,592

Jan-March

4,008

4,335

4,805

4,838

4,472

4,547

8,846

8,807

9,352

Source: Altus Group

With more than 1,480 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.

These results were previously released under the REALNET® Canada name, whose independent and comprehensive data, analyses and insights on the commercial real estate investment and residential development markets is collected and compiled using a nationally consistent research process established in 1995. Going forward they will be released by Altus Group, powered by a proprietary data platform led by Altus Data Solutions Canada. This team is the formal unification of leading Canadian real estate data companies previously acquired by Altus Group, including REALNET® Canada.

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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