Low-rise housing supply continues to slide

TORONTO, Sept. 24, 2015 /CNW/ - The supply of new low-rise homes continued to decline across the GTA in August, the Building Industry and Land Development Association (BILD) announced today.

The amount of new detached, semi-detached and townhomes available for sale in the GTA fell to a new low of 4,298 homes last month, according to RealNet Canada Inc., BILD's official source for new-home market intelligence. High-rise supply decreased slightly as well, bringing total inventory of new homes down to 23,057.

Low supply impacted new-home sales across the region. Low-rise sales, which include detached, semi-detached and townhomes, declined 25 per cent from August 2014. Sales of high-rise condos were down 24 per cent from August of last year.

"Demand for new homes is outpacing supply across the GTA," said BILD president and CEO Bryan Tuckey. "Constrained supply of serviced, developable land has significantly limited inventory of new homes, and you can't sell what you don't have.

"There were a number of new project launches in the first half of 2015, but most of the homes were purchased shortly after they came on the market," said Tuckey, adding that "traditionally there are fewer new launches in August, and it also impacts sales."

The RealNet New Home Price Index showed a small decline in the average price of low-rise homes for the first time in 19 months.  Prices in August 2015 averaged to $800,099 compared to 806,395 in July 2015.

Tuckey also attributes this to the seasonal slowdown and adds that low-rise prices are still 16 per cent higher than August 2014.

The index showed little change in the average price of high-rise homes. Prices in August 2015 averaged to $450,837 compared to $446,398 in July 2015.

Prices in the high-rise market have remained stable over the past year, showing a modest increase of 1 per cent since August 2014.

The decrease in August sales was consistent across all GTA regions, with the exception of Peel, which recorded a modest increase from August 2014. Meanwhile year-to-date sales across the GTA have remained above average, with total new-home sales sitting 13 per cent above the 10-year average at 27,416 homes. 

Monthly New-Home Sales by Municipality:

August '15	Low Rise			High Rise			Total
Region	2013	2014	2015	2013	2014	2015	2013	2014	2015
Durham	139	202	113	6	19	49	145	221	162
Halton	111	140	81	40	79	45	151	219	126
Peel	269	361	377	45	53	71	314	414	448
Toronto	27	64	11	511	967	649	538	1,031	660
York	266	389	287	98	197	187	364	586	474
GTA	812	1,156	869	700	1,315	1,001	1,512	2,471	1,870
Jan-Aug	7,684	12,357	14,193	9,176	14,017	13,223	16,860	26,374	27,416

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, [email protected]; Andrei Zaretski, Manager, Marketing & Media Relations, 416-391-3450 or 416-843-4898, [email protected]