Another Record Month For New Low-Rise Home Prices In The GTA
GREATER TORONTO — Prices of new low-rise homes in the GTA hit a new record high in September, announced the Building Industry and Land Development Association (BILD).
The average price of new townhomes, semi-detached and detached homes in the GTA climbed to a record-setting $811,579, according to RealNet Canada Inc., BILD's official source for new-home market intelligence.
The new average marks an 18-per-cent increase from September 2014 when the price of a new low-rise home was $689,611. Prices of new low-rise homes have more than doubled in the last 10 years. The average price in September 2005 was $386,188.
"The rapid growth of prices for low-rise homes is a simple case of supply and demand," said BILD president and CEO Bryan Tuckey. "Demand for ground-related homes in the GTA is far outpacing supply, and a continuous decline in inventory is fueling the price growth."
The supply of new ground-related homes has remained low for much of 2015. At the end of September there were 4,452 homes available for sale across the region - less than three months of supply based on 2015 sales trends. Tuckey attributes the constraint in supply to a lack of serviced land designated for development of low-rise homes.
He said that low inventory levels are also affecting sales. There were 1,102 low-rise sales in September - down 29 per cent from September 2014. The GTA saw 16 new low-rise projects launched in September containing 439 homes.
"Lack of supply in the low-rise housing market significantly reduces housing choice for new-home buyers, many of whom have been priced out of the low-rise market," said Tuckey.
Prices in the high-rise market remained relatively stable in September, while suites continue to get smaller.
The price of a high-rise home in September was $441,156, only slightly different from September 2014 when the average price was $450,014. However the average size of a new high-rise suite was 767 square feet in September, the smallest on record. In September 2005 the average suite size was 925 square feet.
Tuckey explained that suite size has been decreasing to offset the rising price per square foot in new condominiums. The price-per-square-foot reached a new high of $575 in September.
"By finding creative ways to maximize living space, developers have been able to reduce the size of suites to make them more affordable for new-home buyers," he said.