Record-setting price growth for new homes in the GTA

GREATER TORONTO, Aug. 20, 2015 /CNW/ - The cost of new homes in the GTA continues to grow as prices of low-rise homes set a new record high in July. Meanwhile the price per square foot hit a record high in the high-rise market, the Building Industry and Land Development Association (BILD) announced today.

The average price of a new low-rise home in the GTA hit an unprecedented $806,391 in July, according to the RealNet New Home Price Index. Prices in the low-rise market, which includes detached and semi-detached homes as well as townhomes, has increased by 109 per cent in the last decade.

"In July 2005 the average price of a ground-related home in the GTA was $386,133. Today it is more than double that," said BILD president and CEO Bryan Tuckey. "This means that many first-time buyers have been priced out of the low-rise market."

The average price of a new high-rise home in the GTA was $446,398 in July, up 1 percent from this time last year. Prices for new condominiums have increased by 57 per cent since July 2005, when the average suite cost $284,598.

The price per square foot for high-rise homes reached a record-high $570 in July while average unit size fell to a record-low 783 square feet.

"The industry is using innovating architectural design to make new homes more affordable," Tuckey explained. "By maximizing living space and reducing overall suite size, our members are able to keep prices within reach for many first-time buyers."

The price gap between high-rise and low-rise homes has grown to $359,997, which BILD attributes to limited supply of new ground-related homes due to lack of development-ready, serviced land across the region.

"Homes are being purchased faster than they can be brought to market," he said. "Sales have been strong but a lot of them are coming from older, unsold inventory because new project launches can't satisfy demand."

There were 13,259 low-rise homes sold across the GTA so far this year, while remaining inventory of low-rise homes fell to 4,550 – a new record low.

"Low-rise inventory has fallen below record low levels several times this year and will continue to do so until we have an adequate supply of serviced land designated for development."

Monthly New-Home Sales by Municipality:

July '15

Low Rise

High Rise

Total

Region

2013

2014

2015

2013

2014

2015

2013

2014

2015

Durham

209

251

186

6

25

21

215

276

207

Halton

55

229

177

73

282

78

128

511

255

Peel

228

391

473

65

47

87

293

438

560

Toronto

26

82

41

876

925

854

902

1,007

895

York

299

354

428

75

271

296

374

625

724

GTA

817

1,307

1,305

1,095

1,550

1,336

1,912

2,857

2,641

Jan-July

6,872

11,199

13,259

8,477

12,712

12,269

15,349

23,911

25,528

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. For additional information, contact Andrei Zaretski or Amy Lazar.

SOURCE Building Industry and Land Development Association

For further information: Amy Lazar, Manager, Communications, 416-391-3452 or 416-543-3903, alazar@bildgta.ca; Andrei Zaretski, Manager, Marketing & Media Relations, 416-391-3450 or 416-843-4898, azaretski@bildgta.ca

RELATED LINKS
http://www.newhomes.org

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890