New Report Shows Developers are not Hoarding land in the GTA, Lack of Supply and low Rates to Blame for High House Prices

  • Fortress Real Developments Release Seventh Market Manuscript Report
  • Very High New and Resale Growth Predicted for 2017

TORONTO, March 28, 2017 /CNW/ - In the bi-annual report recently released by Fortress Real Developments (Fortress), Senior Vice-President of Market Research and Analytics, Ben Myers, presents findings and statistics on the Toronto-area housing market. The report includes original research and surveys, and is supplemented by statistics and data from several independent third-party sources. Mr. Myers is an analyst with 15 years of experience researching real estate markets across North America.

House prices and transaction activity in the new and resale markets in the Toronto area set records again in 2016. Market watchers have spent much of the last year contemplating and debating the root causes of the price spike in Toronto. The report delves into this controversial topic and analyzes these much talked about theories. Among the highlights are:

  • There was a 12,000 unit gap between new homes launched in 2016 and sales as demand far exceeded supply;
  • Nearly 60% of developers believe urban containment policies like the Greenbelt and Places to Grow Act are responsible for high new home prices;
  • Nearly one-third of developers believe it will take them five years or longer to get approvals on suburban single-family housing developments;
  • Survey results suggest that developers and not hoarding residential development land;
  • The Halo Effect and how ignoring housing preferences leads to inefficient outcomes.

"I think most can agree that the fundamental driver of the Toronto housing market is that demand has far outstripped supply," says Myers. "Fortress is forecasting very high new and resale price growth in 2017, so we will continue to see bidding wars in prime established neighbourhoods. Also for affordability and lifestyle reasons, people are choosing to buy or rent condominium apartments, while others have decided to increase their commute by more than an hour in many instances for a larger and more affordable home."

The full report is available for download here.

About Fortress Real Developments

Fortress Real Developments Inc. is a Canadian real estate development company that seeks out and analyzes real estate development opportunities in major Canadian markets. The company is focused on quality projects with recognizable alpha in residential low-rise, high-rise, commercial and industrial market segments. For more information visit: http://fortressrealdevelopments.com

SOURCE Fortress Real Developments

For further information: Jenni Byrne, Bayfield Strategy, Inc., jbyrne@bayfieldstrategy.com, Phone: (613) 986-4097

RELATED LINKS
www.fortressrealdevelopments.com

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