New GTA low-rise home prices surpass $900,000 in July, as supply hits record lows

New GTA low-rise home prices surpass $900,000 in July, as supply hits record lows

In Canada by TheRedPin9 Comments

New GTA low-rise home prices surpass $900,000 in July, as supply hits record lows

It’s a question of supply and demand.

Across the five major regions that make up the Greater Toronto Area, only 1,568 new detached, semis and townhomes were available for sale in July – a drastic 90 per cent plummet in inventory from a decade earlier.

In response to the dearth of supply, prices launched skywards, with the average cost of a new GTA low-rise house crossing $900,000 for the first-time ever last month (up 12 per cent year-over-year).

New detached homes already cracked the million dollar mark back in March.

The new figures were released by the Building Industry and Land Development Association (BILD), whose president, Bryan Tuckey, announced “New low-rise home prices have grown exponentially due to limited supply.”

Low-rise home is a collective term for detached, semis and towns.

Based on 10-year sales trends, it would take less than one month to clear the stock of new low-rise houses on the market. Six months of supply is generally considered a balanced market while one month of inventory is a clear sign that conditions are those of an extreme seller’s market.

The new condo market also saw a decline in supply to 15,645 suites, with units in the pre-construction phase in particular falling by 25 per cent from just a year ago. The drop hints that high rises are facing some tightening in inventory, but in all cases, it still pales in comparison to the massive plummet in supply seen in the low-rise family housing market.

Never lived in high rise units changed hands for an average of $594 per square foot or $475,764, up 7 per cent from the same time last year.

The study also highlighted that sizes of new condos experienced a slight bump, with average square footage of units hitting 801 in July, a considerable increase from 775 square feet twelve months earlier.

“In previous years, many builders were focusing on offering smaller and more affordable units to help first-time buyers enter the market,” said Tuckey. “Recent months have seen the introduction of larger suites to meet the demands of the growing range of buyers who have been priced out of the low-rise market.”

New Home Sales Facts

In response to a shortage of available houses and rapidly rising prices, sales of new detached, semis and townhomes saw drastic declines in July.

Sales of low-rise homes dropped 32.5 per cent across the GTA.

Durham (home to cities such as Oshawa and Pickering) was the only region that saw a large-scale jump in the number of new low-rise homes changing hands. Sales in the eastern region increased by 66.8 per cent.

Condominiums on the other hand saw a monumental 52 per cent jump in sales across the GTA, no doubt egged on by their far more affordable price points and sufficient levels of inventory.

New Home Prices Summary

  • New Detached Home
    GTA-Wide Avg. Price: $1,095,910
  • New Semi-Detached Home
    GTA-Wide Avg. Price: $771,530
  • New Townhouse
    GTA-Wide Avg. Price: $758,434
  • New Condo High Rise
    GTA-Wide Avg. Price: $475,764

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Comments

  1. Bruni Matheson

    I am looking to purchase a condominium in the Whitby area. A new condominium that will be ready to move into in a year from now.

    Do you know of any sites that are in progress or coming up shortly.

    Bruni Matheson

    1. Author
      TheRedPin

      Hi Bruni,

      Thank you for reaching out.

      There are a handful of new condos in Whitby (all of which can be viewed here).

      Boathaus Condos, a 4 storey condo community located at 1610 Charles Street in Whitby, has an occupancy date planned for 2017. Available floor plans can be viewed here and range from 477 square foot 1 bedroom suites to 919 square foot 2 bedroom units.

      One of our Inside Agents will be following up soon to provide some more info regarding prices and advice regarding other options in the area – all at no obligation.

      Best,

      TheRedPin

  2. Henry Huynh

    I am looking for the new the detached home in the next year.
    Please provide me the area exactly.
    Thanks.
    Henry

    1. Author
      TheRedPin

      Hi Henry,

      We can definitely help! One of our Inside Agents will be reaching out to you soon. They will provide some information on the market and help identify the specific areas you’re looking to buy.

      Best,

      TheRedPin

  3. Imran

    I want to book new house in new built area.
    In the range of 600000/
    Plz let me know if you have any one.

    Thanks
    Imran

    1. Author
      TheRedPin

      Hi Imran,

      We can definitely help with that, we would just need a bit more information about your search. Our team of Inside Agents will be reaching out to you soon and will provide free, no obligation advice and help hone down your home search at no obligation.

      Best,

      TheRedPin

  4. Amir

    Need to know of any upcoming project of townhoise / semi detatched in yorkville area

    1. Author
      TheRedPin

      Hi Amir,

      Thank you for reaching out. Yorkville is primarily a high rise neighbourhood, however, there are a handful of condo townhouses that are taking shape in or around the area.

      AYC condos and The Urban Townhome Collection by The Pemberton Group are two upcoming projects that will feature townhouse additions.

      There are some resale townhouse and semi-detached options in the area as well (which can be viewed on our website map here).

      Your inquiry has also been passed onto our team of Inside Agents, who will provide one-on-one advice and help hone down your search criteria at no obligation.

      Best,

      TheRedPin

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