Low-rise prices continue to climb as sales hit record lows

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
Region	2011	2012	2013	2011	2012	2013	2011	2012	2013
Durham	205	120	127	7	13	6	212	133	133
Halton	610	76	111	282	16	55	892	92	166
Peel	282	254	286	61	65	44	343	319	330
Toronto	47	19	21	1,013	589	451	1,060	608	472
York	383	119	232	560	89	77	943	208	309
GTA	1,527	588	777	1,923	772	633	3,450	1,360	1,410
Jan-Aug	12,344	10,558	7,648	17,996	13,207	9,127	30,340	23,765	16,775

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

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]