New Low-Rise Sales Hit Record Low in GTA
GREATER TORONTO — The Building Industry and Land Development Association (BILD) announced sales of new detached, semi-detached and townhomes combined for the lowest March on record while prices continue to climb.
According to RealNet Canada Inc., BILD’s official source for new home market intelligence, 973 low-rise homes were sold in the GTA in March, down 47 per cent from last year, while the RealNet New Home Price Index showed an 11 per cent increase. The high-rise sector amounted to 1,120 across the GTA, bringing total new home sales to 2,093 in March.
In addition, the low-rise market in the GTA is suffering from decreasing affordability, as a result of constrained land supply and an outdated approvals process. New communities across the GTA are being held up 10 years in the planning approvals process, which is affecting the supply chain and driving prices up.
The price gap between low-rise and high-rise homes increase to a record $207,000, nearly tripling in the last four years as high-rise prices stabilized due to shrinking unit sizes. The high-rise price index increased 3 per cent from March 2012.