GREATER TORONTO, Sept. 23, 2013 /CNW/ - New home sales in the GTA remained low in August while prices in the low-rise sector rose to a new record high, the Building Industry and Land Development Association announced today.
According to RealNet Canada Inc., BILD's official source for new home market intelligence, the 633 new high-rise homes sold in the GTA added up to the lowest August in a decade and 46 per cent below the long-term average.
The low-rise market showed some strength when compared to 2012, but the 777 sales of new detached, semi-detached and townhomes still totalled the third-lowest in 10 years and 43 per cent below average. Meanwhile the price index in the low-rise sector reached a new record high of $658,938.
"Constrained land supply has severely diminished inventory in the low-rise sector, bringing prices to a considerable increase. Another factor is the rising government fees and charges which, on average, add up to one-fifth of the cost of a new home," said BILD President and CEO Bryan Tuckey, who explained that new home pricing also affects prices of existing homes. "Affordability continues to be a challenge for everyone looking to buy a ground-related home in the GTA."
The price gap between the high-rise and low-rise sectors has grown to the highest on record at $222,149 with prices of high-rise homes remaining steady.
A statistical video analysis of August new home sales is available for viewing. For additional information, contact Amy Lazar or Andrei Zaretski.
|August '13||Low Rise||High Rise||Total|
Source: RealNet Canada Inc.
With more than 1,400 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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