While new detached home sales saw record increases in March 2016, new condominium units in the Greater Toronto Area (GTA) experienced falling sales compared to one year ago, according to the Building Industry and Land Development Association (BILD).
The high-rise market is a more affordable option for those first-time buyers who are unable to afford a low-rise home. The average price of high-rise homes increased moderately at two per cent year-over-year to $459,231. On a price per square foot basis, the average rice increased four per cent to $582.
In March, there were 1,560 new home sales in the high-rise market, which is a 22 per cent decrease compared to March 2015 and is 12 per cent below the 10-year average.
The available inventory for high-rise homes in the GTA fell to 18,280.
Meanwhile, the average price of a new detached home in the GTA has risen above the $1-million mark for the first time. As of March 31, the average price of a new detached home in the GTA reached $1,045,659 according to BILD’s source for new-home market intelligence, Altus Group. This is a 21 per cent increase year-over-year and is more than double the average price of a new home 10 years ago.
According to BILD president and CEO Bryan Tuckey, the price increase was partly caused by the supply of new housing not keeping up with demand due to government intensification policies and a lack of serviced developable land.
“The demand for detached homes is far outpacing supply as the GTA’s population continues to grow,” said Tuckey in a press release. “Our region has record-low levels of new detached homes available for sale, which drives up prices and reduces housing choice for consumers.”
March saw the sale of 905 detached homes, down nine per cent year-over-year and three per cent below the 10-year average. As of March 31, there were 1,634 new detached homes available for sale across the GTA, compared to March 2006, when there were 11,149 detached homes in remaining inventory.
Although the home building and land development industry continues to meet the province’s intensification requirements and is constructing more townhomes and high-rise condos, Tuckey says the demand for new detached homes remains high.
The average price for low-rise homes overall, including townhomes, semi-detached and detached homes, also set a new record for price in March at $849,312, a 15 per cent increase year-over-year.
The average price of a new townhome reached $672,419 in March, while the average price for a new semi-detached home reached $612,487.
“New low-rise homes are being purchased faster than they can be brought to market,” said Tuckey. “As long as demand for low-rise homes continues to outpace supply, we will continue to see rapid price growth.”
There were 2,032 low-rise homes sold in March, a 16 per cent increase over March 2015 and a 26 per cent increase over the 10-year average. As of March 31, there were 3,036 homes in remaining inventory, a record low.
