Prices of new low-rise homes in the GTA have reached a record high, according to the Building Industry and Land Development Association (BILD).
The average price of new detached, semi-detached and townhomes across the GTA increased 17 per cent year-over-year to $818,354 at the end of November, according to BILD’s official source for new-home market intelligence, RealNet Canada Inc. 10 years ago, the average price of a new low-rise home in the GTA was only $388,805.
“Prices in the low-rise market have more than doubled in the last 10 years,” said Bryan Tuckey, BILD president and CEO, in a press release. “This significantly reduces the average buyer’s ability to afford a new low-rise home in the GTA.”
Meanwhile, average prices in high-rise homes across the GTA changed very little due to smaller suite sizes. The average price of a high-rise home was $446,981 at the end of November, a decline of less than one per cent over November 2014’s average price of $449,371. However, the average suite size in November was 772 square feet – a decrease of four per cent from 2014 and 14 per cent from 2005, when the average suite size was 810 and 901 square feet, respectively.
“While average prices of high-rise suites has not changed, the price per square foot continues to grow,” said Tuckey. “To keep the price of new condominiums within reach for new-home buyers, the industry has found creative ways to reduce the overall size of suites while maximizing living space.”
In new high-rise homes in the GTA, the price per square foot sat at $579 in November, a four per cent increase from November 2014’s $555 per square foot. November’s figure is also a 74 per cent increase over November 2005, when the average price per square foot was $333.
“Our member companies continue to find new and innovative ways to build new homes that are affordable for new-home buyers amidst a price surge fueled by constrained supply of serviced land designated for development,” said Tuckey. “It is a challenge because constrained supply has resulted in fewer new homes being brought to market, which means demand is far outpacing supply, particularly in the low-rise market.”
In November of this year, there were 1,800 new detached, semi-detached and townhomes sold in the GTA, dropping the new low-rise inventory to 4,669 homes. This represents a 73 per cent decrease over 2005, when inventory stood at 17,311 homes for sale.
“The GTA has less than three months of inventory remaining,” said Tuckey. “It is critical that we have an adequate supply of serviced land designated for development so that we can continue to build quality, complete communities that people can afford and want to purchase.”