New construction home sales climbed in the GTA in October, primarily driven by sales of multi-family homes, condo apartments in high-rise and mid-rise buildings and stacked townhomes, says the Building Industry and Land Development Association (BILD).
According to Altus Group, there were 5,377 new homes sold in October in the GTA. Of those homes sold, about 91 per cent, or 4,884 units, were multi-family homes, and nine per cent (493) were low-rise single-family homes, such as detached and semi-detached houses and townhomes. Condo sales for the month of October were 81 per cent above the 10-year average of 2,697, and the highest October levels on record, while low-rise sales fell 64 per cent below the 10-year average of 1,388.
As of the end of October, 39,476 new homes have been sold in the GTA in 2017; condo apartments in high-rise and mid-rise buildings and stacked townhomes account for 82 per cent of those sales.
“October data shows that the new homebuyer is left with very little choice when it comes to purchasing a new home,” said Bryan Tuckey, BILD president and CEO, in a press release. “Provincial intensification policy has our members building more high- and mid-rise dwellings, making housing choices a challenge. The cost of a single family home is out of reach for many consumers pushing them to buy a condo over a house. As a result, we are seeing record-breaking condo sales and higher prices this year for new low-rise homes.”
While supply of new housing increased again in October and reached 12,500 units, this number is still well below what is considered a healthy level. Supply of new housing is typically measured by the number of new homes available for purchase in builders’ inventories at the end of the month. As of the end of October, there were 9,308 multi-family homes and 3,192 single-family homes available for sale in the GTA.
“Demand for newly-built condominium apartments is being fueled by three key buyer groups – small investors who have become the de facto providers of new rental housing supply in the GTA; end user buyers who might prefer a single-family home but are seeking out more affordable options; and the more traditional end users who value the lifestyle and amenities of well-located projects,” added Patricia Arsenault, Altus Group’s executive vice president of research consulting services.
Prices of available new homes in October climbed slightly for both single-family low-rise homes and multi-family homes. The average price for available new single-family homes was $1,217,428, slightly above September levels and a 29.8 per cent increase year-over-year. The average price for available new detached homes was $1,548,888, and the average price for new available townhomes was $995,571.
Meanwhile, the average price of a new condo apartment in high-rise and mid-rise buildings and stacked townhomes was $677,456, up from $661,188 in September. The average price per square foot was $791, and the average unit size was 857 square feet.
