Price increase of new low-rise homes continues

GREATER TORONTO, Dec. 17, 2015 /CNW/ - Prices of new low-rise homes in the GTA climbed to a new record high, the Building Industry and Land Development Association (BILD) announced today.

The average price of new detached, semi-detached and townhomes across the region reached $818,354 at the end of November. This is a 17-per-cent increase from November 2014 when the average price was $700,779, according to RealNet Canada Inc., BILD's official source for new-home market intelligence.

"Prices in the low-rise market have more than doubled in the last 10 years," said BILD president and CEO Bryan Tuckey. "This significantly reduces the average buyer's ability to afford a new low-rise home in the GTA."

The average price of a new low-rise home in November 2005 was $388,805.

Average prices of high-rise homes saw little change as a result of smaller suite sizes across the GTA.

The average price of a high-rise home was $446,981 at the end of November, a decrease of less than 1 per cent from November 2014 when the average price was $449,371. Meanwhile the average size of a new high-rise suite in November was 772 square feet – a decrease of 4 per cent from 2014 and 14 per cent from 2005 when suite size was 810 and 901 square feet respectively.

"While average prices of high-rise suites has not changed, the price per square foot continues to grow," Tuckey said. "To keep the price of new condominiums within reach for new-home buyers, the industry has found creative ways to reduce the overall size of suites while maximizing living space."

The price per square foot of new high-rise homes in the GTA was $579 at the end of November, marking a 4 per cent increase from November 2014 when the price was $555. The average price per square foot has grown 74 per cent in the last 10 years from $333.

"Our member companies continue to find new and innovative ways to build new homes that are affordable for new-home buyers amidst a price surge fueled by constrained supply of serviced land designated for development," Tuckey said. "It is a challenge because constrained supply has resulted in fewer new homes being brought to market, which means demand is far outpacing supply, particularly in the low-rise market."

There were 1,800 new detached, semi-detached and townhomes sold in November in the GTA, bringing the remaining inventory of new low-rise inventory down to 4,669 homes. This is a 73 per cent decrease in inventory from 2005 when the amount of homes available for sale was 17,311. A detailed table of new-home sales across the region is available below.

"The GTA has less than three months of inventory remaining," Tuckey said. "It is critical that we have an adequate supply of serviced land designated for development so that we can continue to build quality, complete communities that people can afford and want to purchase."

November New-Home Sales by Municipality:

November '15

Low Rise

High Rise

Total

Region

2013

2014

2015

2013

2014

2015

2013

2014

2015

Durham

200

251

308

11

29

88

211

280

396

Halton

86

242

488

132

99

182

218

341

670

Peel

397

428

505

49

142

72

446

570

577

Toronto

65

67

34

1,470

2,231

1,473

1,535

2,298

1,507

York

455

290

465

122

149

238

577

439

703

GTA

1,203

1,278

1,800

1,784

2,650

2,053

2,987

3,928

3,853

Jan-Nov

11,512

17,116

18,943

14,673

21,293

20,232

26,185

38,409

39,175

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: 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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