GREATER TORONTO, June 18, 2015 /CNW/ - The price of new low-rise homes grew to a new high, bringing the price gap between new low-rise and high-rise homes in the GTA to its highest on record, the Building Industry and Land Development Association (BILD) announced today.
The average price of a new low-rise home in the GTA, which includes detached, semi-detached and townhomes, reached $783,995 at the end of May - a 16 per cent increase over May 2014, according to RealNet Canada Inc., BILD's official source for new-home market intelligence.
The average price of new high-rise homes remained relatively unchanged at $440,463, driving the price gap to a record-high of $343,492. The gap has grown by $100,000 in one year. In May 2014 the price difference between new high-rise and low-rise homes was $237,301.
"The rapidly widening price gap is an indication that demand is far outpacing supply in this part of the market," said BILD president and CEO Bryan Tuckey. "As the price of ground-related housing continues to grow at a record pace, it's becoming increasingly difficult for GTA residents to afford a low-rise home."
Low-rise inventory at the end of May recorded 5,198 homes available for purchase across the GTA, slightly exceeding the record-low levels set in April. This amount currently represents just 20 per cent of total new-home inventory in the region, illustrating the constraint in low-rise housing supply.
"The effect of new-home pricing is also trickling down to resale homes, which is something that affects all homebuyers," Tuckey added. "As inventory borders on record low level, we need an adequate supply of low-rise homes to ensure healthy levels of housing choice that are necessary to accommodate the needs of our expanding region."
Monthly New-Home Sales by Municipality:
|May '15||Low Rise||High Rise||Total|
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.
SOURCE Building Industry and Land Development Association
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