Another record month for new low-rise home prices

GREATER TORONTO, Oct. 27, 2015 /CNW/ - Prices of new low-rise homes in the GTA hit a new record high in September, the Building Industry and Land Development Association (BILD) announced today.

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," Tuckey said.

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.

A detailed table of the GTA's September new-home sales in the last three years is available below. The table also features year-to-date sales trends in the last three years.

September New-Home Sales by Municipality:

	Low Rise			High Rise			Total
Region	2013	2014	2015	2013	2014	2015	2013	2014	2015
Durham	244	218	132	0	31	82	244	249	214
Halton	255	157	90	65	91	115	320	248	205
Peel	302	522	391	74	204	67	376	726	458
Toronto	24	61	27	1,062	1,839	658	1,086	1,900	685
York	312	591	462	210	195	157	522	786	619
GTA	1,137	1,549	1,102	1,411	2,360	1,079	2,548	3,909	2,181
GTA Jan-Sept	8,810	13,896	15,252	10,586	16,374	14,476	19,396	30,270	29,728

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

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]