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New home sales

2018 GTA new home sales drop to lowest mark in nearly 20 years

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2018 GTA new home sales drop to lowest mark in nearly 20 years

New home sales

Last year saw the lowest total sales in almost 20 years in the GTA new home market, the Building Industry and Land Development Association (BILD) reports.

Overall in 2018, there were 25,161 new homes sold in the GTA, according to Altus Group, BILD’s official source for new home market intelligence, making 2018 the year with the lowest number of new home sales in the GTA since Altus Group started tracking new home data in 2000.

New record low

There were 21,330 condominium units sold in 2018, including those in low-, mid and highrise buildings, stacked townhouses and loft units – down 38 per cent from 2017 but only four per cent less than the 10-year average. Setting a record low since Altus began tracking new home data in 2000, there were only 3,831 single-family homes sold in 2018, including detached, linked and semi-detached houses and townhouses (excluding stacked townhouses). This is down 50 per cent from 2017 and down 74 per cent from the 10-year average.

“A number of factors combined to produce the drop in GTA new home sales in 2018,” says Patricia Arsenault, Altus Group’s executive vice-president, Data Solutions. “More stringent mortgage stress testing, rising interest rates and lack of single-family product affordable to a broader range of buyers all played a role. As well, the record new condo apartment sales in 2017 brought forward some demand that would otherwise have occurred in 2018.”

In December, the benchmark price for new condos was $796,815, up 11.2 per cent over the last 12 months. The benchmark price for single-family homes was $1.14 million, down 6.7 per cent over the last 12 months.

Out of balance

“From our point of view, the market is out of balance,” says David Wilkes, BILD president and CEO. “We must continue to work with all levels of government to ensure that policies don’t artificially price consumers out of the market.

“We commend the provincial government for taking action toward increasing housing supply in Ontario,” Wilkes adds. “We join other industry groups in calling on the federal government to revisit the stress test and allow a longer amortization period for first-time buyers. And we look forward to working with our municipal partners on removing barriers to development such as excessive red tape and outdated bylaws.”

At the end of December, there were 15,768 new homes available for purchase, comprised of 10,687 condominium units and 5,081 single-family homes. Remaining inventory includes units in preconstruction projects, in projects currently under construction, and in completed buildings.

 

December New Home Sales by Municipality

December 2018 Condominium apartments Single-family Total
Region 2018 2017 2016 2018 2017 2016 2018 2017 2016
Durham 40 17 50 44 15 75 84 32 125
Halton 48 163 59 21 47 93 69 210 152
Peel 108 89 130 32 11 152 140 100 282
Toronto 479 404 1,684 9 8 31 488 412 1,715
York 129 195 345 30 62 274 159 257 619
GTA 804 868 2,268 136 143 625 940 1,011 2,893

Source: Altus Group

RELATED READING

GTA new home market back to typical sales and openings levels in November

GTA among the most promising new home outlooks for 2019, Altus Group says

GTA condos lead resale price growth in 2018

 

 

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Industry Expert

Now is the time to start planning this year’s renovation

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Now is the time to start planning this year’s renovation

You meant to redo your kitchen and finish your basement last summer, but the warm days came and went and your renovation project remained only an idea. Not to worry, because now is the perfect time to start planning to make your renovation a reality this summer.

With a generous lead time, you can afford to be thorough with every step in the renovation process, increasing your chances of success. The first step is to articulate what goals you want to achieve with your renovation, and develop a clear description of what you want to change. Write down your priorities and items that would be nice to have if your budget allows. Make sure everyone in your home participates in the discussion so you have a complete picture of what is needed.

Photography: bigstock.com
Photography: bigstock.com

Research a reputable renovator

Next, find a professional renovator who will guide you through the process. The good ones get booked up months in advance. You will be putting a lot of trust in this person, so look for a renovator who is a member of BILD’s RenoMark program, which means that they have committed to the RenoMark code of conduct and BILD’s code of ethics. To find a RenoMark renovator, visit renomark.ca.

Price is an important consideration when choosing a renovator, but experience, construction schedule and references are just as crucial. Take the time to check three references to get a good understanding of how the company operates.

Plans & permits

Once you have selected your professional renovator, he or she may bring in a designer or architect, and together you will work through your project outline and create plans and specifications. These will help determine the budget estimate and any building permits and approvals you will need. In some municipalities, obtaining building permits and approvals can take many weeks and even months – another reason it’s good to start the process early.

When you are comfortable with the preliminary design, budget, and timetable, you’re ready to draw up a written contract with your renovator. The contract sets out the precise scope of the work, the price, a schedule of payments, a reasonable timetable for completing the work, product-specific details and a warranty clause. The contract should be reviewed by a lawyer.

Get it in writing

A RenoMark renovator will provide a contract for all projects. Avoid renovators who offer to work without a contract, even if they promise to skip the HST or offer another incentive. They may not be paying workers’ compensation or carry adequate insurance, leaving you at financial risk.

My final piece of advice is to spend some time on RenoMark.ca and read the articles in our Ask a Renovator series – they cover various aspects of renovation in more detail.

Renovating your home is exciting and rewarding. And as you can see, there’s plenty you can do now to prepare for this year’s renovation. By starting early, you will have your renovator team selected, contract signed, and permits and approvals in place by the time renovation season returns.

David Wilkes is president and CEO of the Building Industry and Land Development Association (BILD), the voice of the home building, land development and professional renovation industry in the GTA.

For the latest industry news and new home data, follow BILD on Twitter, Facebook, BILD’s official blog, and bildgta.ca.


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New home market

GTA new home market back to typical sales and openings levels in November

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GTA new home market back to typical sales and openings levels in November

New home market

The GTA new home market saw more typical activity levels in November, both in new home sales and new project openings, after a relatively strong October, the Building Industry and Land Development Association (BILD) reports.

There were 2,823 new homes sold in November, according to Altus Group, BILD’s official source for new-home market intelligence. Condominium apartments in low-, medium- and highrise buildings, stacked townhouses and loft units accounted for 2,454 new home sales in November, down 24 per cent from November 2017, but only sixper cent less than the 10-year average. Single-family home sales, with 369 detached, linked and semi-detached houses and townhouses (excluding stacked townhouses) sold, were up eight per cent from last November but down 71 per cent from the 10-year average.

Remaining inventory increased month over month, to 16,797 units, comprised of 11,254 condo apartment units and 5,543 single-family units. Remaining inventory includes units in preconstruction projects, in projects currently under construction, and in completed buildings.

Strong finish

“The condominium apartment market in the GTA is finishing off the year on a stronger note than it started,” says Patricia Arsenault, Altus Group’s executive vice-president, Data Solutions. “Both builders and buyers have re-engaged in stronger numbers in recent months, signalling that the downturn that followed record activity last year may be coming to an end.”

The benchmark price for both condo apartments and single-family homes increased slightly in November compared to the previous month. The benchmark price for condo apartments was $786,602, which was up 11.9 per cent over the last 12 months. The benchmark price for single-family homes was $1,150,823, down 5.9 per cent over the last 12 months.

Although the housing market continued to show signs of recovery in November, it will continue to operate below capacity until fundamental issues that are restricting supply and demand are addressed through government policy, according to David Wilkes, BILD president and CEO.

No more talk

“The time for talk is done and our region needs action now to ensure we build the more than 50,000 new homes needed annually to support the GTA’s growing population,” says Wilkes. “Our industry is encouraged by the provincial government’s commitment to unlocking supply. We will continue to call on municipal governments to expedite approvals of new developments, and on the federal government to undo the negative effects of the outdated stress test on consumers’ ability to purchase homes.”

 

November new home sales by municipality

November 2018 Condominium Apartments Single-Family Total
Region 2018 2017 2016 2018 2017 2016 2018 2017 2016
Durham 404 16 57 54 75 171 458 91 228
Halton 101 204 114 107 88 415 208 292 529
Peel 736 181 231 52 61 132 788 242 363
Toronto 1,124 2,425 2,678 17 21 110 1,141 2,446 2,788
York 89 387 317 139 97 837 228 484 1,154
GTA 2,454 3,213 3,397 369 342 1,665 2,823 3,555 5,062

 Source: Altus Group

RELATED READING

GTA new home market gains further momentum in October

GTA moving into balanced market for 2019

GTA new home market shows some improvement in September

 

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Left to right, Frank Spaziani, Klaus Meyer (Hampers of Hope), Cailey Stollery and Russell Foy (Hampers of Hope).

Kylemore Communities embraces holiday spirit

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Kylemore Communities embraces holiday spirit

 

Left to right, Frank Spaziani, Klaus Meyer (Hampers of Hope), Cailey Stollery and Russell Foy (Hampers of Hope).
Left to right, Frank Spaziani, Klaus Meyer (Hampers of Hope), Cailey Stollery and Russell Foy (Hampers of Hope).

Luxury home builder and land developer, Kylemore Communities/Angus Glen Development, embraced the spirit of giving this season with a donation to benefit Markham Stouffville Hospital Foundation and by hosting an annual holiday Ccelebration for consultants, suppliers and staff.

An important part of the company’s annual holiday celebration is a toy drive, and the total donations made an impressive display once again. The donated toys and games were divided between local organization Hampers of Hope, as well as SickKids Hospital.

The celebration was hosted by Cailey Stollery, CEO, Lindsay Stollery Jephcott CIO of Angus Glen and Kylemore Group of Companies, and Kylemore vice-president Frank Spaziani.

“We truly appreciate the loyalty, support and contribution of our tradespeople, suppliers and consultants that together make a Kylemore home among the best and most desirable in the GTA,” says Spaziani. “We have some exciting major new communities coming in 2019 and 2020, and with the continued dedication of our staff and suppliers we’ll bring these to fruition.”

Bear Necessities

Kylemore’s donation to the Bear Necessities program will benefit Markham Stouffville Hospital Foundation. The program helps the hospital to purchase life-saving equipment that government funding doesn’t cover.

“We have a decades-long commitment to Markham where many of our team live, work and play,” says Stollery. “Through our Kylemore Kares charitable initiative, we are pleased to be supporting the local hospital, which provides a vital service to area residents.”

There’s still time to join Kylemore in lifting someone’s spirits this holiday season, with the purchase of a plush Teddy Bear, soft sleep sack for a newborn, or a warm blanket for a patient. Learn more at lifesavinggifts.ca or call 905.472.7059.

Kylemore Communities is the recipient of a Heritage Markham 2017 Award of Excellence for the restoration and integration of the historic Colty’s Corner Schoolhouse into The Shoppes of Angus Glen; a 2014 Markham Design Excellence Award for Angus Glen Community, which also received BILD Association’s 2013 Places to Grow Community of the Year Award. Kylemore’s The 6th at Angus Glen has captured numerous prestigious design awards from BILD, OHBA and an Award of Merit from the Association of Registered Interior Designers of Ontario (ARIDO).

For more information, visit kylemorecommunities.com

 

 

 

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EDITOR'S CHOICE: Podium Developments

New home buying opportunities abound in Oshawa and Durham Region

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New home buying opportunities abound in Oshawa and Durham Region

EDITOR'S CHOICE: Podium Developments
Ironwood Towns in North Oshawa by Podium Developments and Urban Capital

Despite the bad news this week that General Motors Canada plans to close assembly operations in Oshawa, there are some good new home buying opportunities in the city and elsewhere in Durham Region.

As various levels of government and the Unifor trade union vow to somehow keep the plant open or otherwise deal with the fallout of the decision, the housing sector in Oshawa is expected to shift into a buyers’ market.

That could mean deals for buyers in a market where home prices have already been under pressure.

 

Also read: What the GM plant closure means for Oshawa economy and housing

Also read: Oshawa housing to move into buyers’ market thanks to GM closure

 

For those looking to buy a new home, know that there are still plenty of good opportunities in Oshawa and surrounding area.

First, let’s look at recent new home buying activity in the area, courtesy of statistics from Altus Group, theofficial source for market intelligence for the Building Industry and Land Development Association (BILD).

 

Total new home sales, units

Oshawa Durham Region
Annual
2013          682       2,376
2014       1,108       3,130
2015          971       3,433
2016       1,149       5,344
2017          490       2,385
Jan-Oct
2017          483       2,262
2018            83       1,065
Source:  Altus Group

 

Naturally, the GM news is a sensitive topic to an industry such as home building, where companies dedicate years to planning and construction development projects. So don’t expect a comment any time soon from BILD, the voice of home builders in the GTA, or individual companies.

Might developers at some point offer deals – be they discounts or upgrades – in order to move an unsold inventory in a market not feeling the strongest at the moment?

It never hurts to ask.

 

A selection of new home and condo inventory

Ironwood in North Oshawa, Building Capital and Podium Developments, contemporary freehold townhomes

Harmony Creek, Conservatory Group, townhomes and detached homes

Daniels FirstHome Oshawa, townhomes

Brook Phase 2, Delpark Homes, detached homes

Fields of Harmony Phase IV, Greycrest Homes, detached homes

Harmony Gate, Sundance Homes, townhomes

Kingsview Ridge, Treasure Hill, 30-, 36- and 40-ft. singles

Park Ridge, Tribute Communities, detached homes from the low $900’s

U.C. Towns 2, Tribute Communities, townhomes form the low $600’s

Top of Townline, Woodland Homes, detached homes

For more new home buying opportunities, visit MyHomePage.ca

With files from Natalie Sicilia, New Home Research Manager & Map Editor

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Condos Oct web

GTA new home market gains further momentum in October

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GTA new home market gains further momentum in October

 Condos Oct web

The GTA new home market saw a relatively active month for new condominium apartment and single-family home sales and openings in October, according to the Building Industry and Land Development Association (BILD).

There were 2,805 condominium apartments in low, medium and highrise buildings, stacked townhouses and loft units sold in October, down 44 per cent from October 2017 but only one per cent less than the 10-year average, according to Altus Group, BILD’s official source for new home market intelligence. Single-family home sales, with 491 detached, linked and semi-detached houses and townhouses (excluding stacked townhouses) sold, were even with last October and down 64 per cent from the 10-year average.

With 21 condominium apartment projects and 14 single-family home projects opening in October, remaining inventory increased to 16,283 units, comprised of 10,982 condo apartment units and 5,301 single-family units. Remaining inventory includes units in preconstruction projects, in projects currently under construction and in completed buildings.

October best month

“The pickup in interest from builders and home buyers that started to emerge in the GTA new home market in September gained momentum in October,” says Patricia Arsenault, Altus Group’s executive vice-president, Data Solutions. “October was the best month we’ve seen this year not only in terms of sales – for both single-family homes and condominium apartments – but also new project openings. And for both sales and new openings, the increases from last month were stronger than the typical seasonal pattern.”

David Wilkes, BILD president and CEO, says the new home market’s gradual return to more typical activity levels was an encouraging sign. “It’s clear that when we are able to bring on more supply and give new home buyers more product to choose from, they get excited and motivated about making that choice. That’s why we are especially heartened by the new provincial government’s commitment to increasing housing supply through its Housing Supply Action Plan.”

Benchmark prices

The benchmark price for both condo apartments and single-family homes decreased slightly in October, compared to the previous month. The benchmark price for condo apartments was $775,537, which was still up 14.5 per cent over the last 12 months. The decrease in the benchmark price of condo apartments from September can be accounted for by the smaller benchmark size of units available to purchase. The benchmark price for single-family homes was $1.11 million, down 8.4 per cent over the last 12 months.

October new home sales by municipality

October 2018 Condominium Apartments Single-family Total
Region 2018 2017 2016 2018 2017 2016 2018 2017 2016
Durham 79 19 96 55 207 323 134 226 419
Halton 328 162 375 78 69 515 406 231 890
Peel 169 110 203 148 48 177 317 158 380
Toronto 2,133 4,085 1,478 74 28 14 2,207 4,113 1,492
York 96 613 336 136 139 621 232 752 957
GTA 2,805 4,989 2,488 491 491 1,650 3,296 5,480 4,138

 Source: Altus Group

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GTA new home market shows some improvement in September

New homes today offer countless benefits

Builders constantly improve energy efficiency of new homes

 

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Approval web

Delays in approval process contributing to housing affordability issue in GTA

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Delays in approval process contributing to housing affordability issue in GTA

Approval web

The former Ontario government’s growth policies have had the unintended consequences of lengthening the land development and approval process in the Greater Toronto and Hamilton Area (GTHA), negatively impacting housing supply and affordability.

This is among the key findings in the Greater Toronto and Hamilton Area Land Supply Analysis from the Building Industry and Land Development Association (BILD) and Malone Given Parsons Ltd. (MGP).

“Growth policies implemented by the former provincial government from 2006 and 2017 have reduced the amount of available land for new housing communities, increased land prices and have caused home prices to skyrocket,” says Dave Wilkes, president and CEO, BILD, referring to the 2006 and 2017 Growth Plans.

Read more: 5 steps to solving the housing affordability issue in Ontario

Read more: Pent-up demand for townhomes building in the GTA

Read more: GTA new home market shows some improvement in September

“Land use in the province of Ontario is highly regulated  and the 2006 and 2017 Growth Plan changes have slowed down the approval process to bring new land on stream for new communities,” adds Matthew Corey, principal, MGP. “Increasing the supply of new land for housing is subject to a process that can take as long as a decade or more.”

The analysis is intended to provide an accurate accounting of greenfield land supply in the GTHA and Simcoe, to determine if the 2031 population and job forecasts of the Growth Plan will be achieved.

Key observations

  • The percentage of available land that has been approved for new housing communities in the GTHA is 4.5 per cent and decreasing.
  • Some municipalities in the GTHA have yet to conform to the 2006 Growth Plan requirements, missing the 2009 target by nearly a decade, resulting in less housing being built across GTA municipalities versus Growth Plan forecasts.
  • As land supply dwindles and as municipal delays increase, the value of serviced land has increased by more than 300 per cent since 2006.
  • Existing low density neighbourhoods in the GTHA are resistant to intensification, pushing density to urban cores and to new communities near the fringes of the GTHA. The latter are far away from transit and infrastructure, putting a greater reliance on cars and increasing traffic congestion.
  • More gentle density homes (stacked-townhouses and lowrise apartments) should be built within walking distance of transit in built-up areas of the GTHA. This will maximize investment in infrastructure and transit. However, community resistance to increased density makes building in this area time-consuming, expensive and subject to intervention at the municipal level.

Recommendations

BILD and Malone Given Parsons offer six recommendations to help solve the issues:

  1. Make more vacant land available for new communities
  2. Cut bureaucratic red tape and reduce duplication in the planning and approval process
  3. Avoid pushing too much density to fringe areas and away from transit and existing infrastructure
  4. Encourage moderate or gentle intensification across the region by clarifying and amending Growth Plan policies to encourage intensification across the GTHA
  5. Maximize investment in transit and infrastructure
  6. Provide greater certainty for future development by identifying the agricultural and rural lands in the inner-ring (Whitebelt) as future urban areas in the Growth Plan.

 

 

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INDUSTRY EXPERT: Stress Buster

Stress Buster: Avoid needless home improvement stress with these simple steps

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Stress Buster: Avoid needless home improvement stress with these simple steps

Regular communication between you and your renovator is essential and may avoid problems.

Canadians love their homes. So much so that homeowners spent nearly $73 billion in 2017 on renovations, according to the Altus Group. That’s $20 billion more than is spent annually on building new homes across the country.

Unfortunately, everyone has a horror story about a home renovation gone wrong, from losing their deposit, spending more than you anticipated, or a project that took too long to finish. The reality is that the average homeowner doesn’t know all they should know when undertaking a renovation project.

Photography: Bigstock.com
Photography: Bigstock.com

To avoid disappointment and to set you on a path toward a successful renovation, RenoMark has come up with five steps to a worry-free renovation.

  1. Define your project. The more you know what you want out of the renovation, the more accurately the renovators can help you achieve that goal.
  2. Set your budget and expectations on the same path, if they are not realistic or in alignment, then you will be disappointed before you even start.
  3. Select the right renovator, you should look to reputable organizations such as RenoMark as a source of professional companies. Plus, these companies must adhere to the RenoMark code of conduct and the Association’s code of ethics, this alone means that they are a professional and not a fly-by-night company.
  4. Sign a contract. The contract should be reviewed by a lawyer and it will be the basis of understanding for the work moving forward. At a minimum, it should include costs, payment schedule, construction timeline, product-specific details, a communication protocol, warrantee clause, and a close-out plan. Avoid renovators who offer to do work without a contract in an attempt to avoid paying the HST. This type of renovator may also not be paying worker’s compensation or carry adequate insurance, leaving you at financial risk.
  5. Check on Progress. Regular communication between you and your renovator is essential and may avoid problems. During the course of a renovation, it is common for the homeowners to request changes or ask for additional work. These requests may affect the cost and time it takes to complete your project. It is important that you have a signed change order for all changes. Finally, remember to ask questions. The last thing anybody wants is to make an assumption or a guess that may lead to an error and then disappointment.

RenoMark.ca is a great resource to help you find the right renovator. RenoMark was established by the GTA-based Building Industry and Land Development Association (BILD) to identify professional contractors that have agreed to abide by a renovation-specific Code of Conduct. The RenoMark program has been endorsed by the Canadian Home Builders’ Association and the Ontario Home Builders’ Association.

David Wilkes is president and CEO of the Building Industry and Land Development Association (BILD), the voice of the home building, land development and professional renovation industry in the GTA.

For the latest industry news and new home data, follow BILD on Twitter, Facebook, BILD’s official blog, and bildgta.ca.


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cl_nov18_condo_market2_fi

Government should develop a better plan for Development Charges

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Government should develop a better plan for Development Charges

We read and hear a lot of criticism in the media and from the general public aimed at builders and developers, complaining about the rising prices of new homes and condominiums in Toronto and the Greater Toronto Area. Blaming builders and developers alone is unfair. Our governments that control development charges must accept a big chunk of the responsibility for current housing prices.

In May of this year, Altus Group conducted a study for BILD entitled “Government Charges and Fees on New Homes in the Greater Toronto Area” and found that the average government charges for a new single detached home add up to $186,300, which is 21.7 per cent of the price. Think about it: 21.7 per cent of the price! Development charges for the average highrise apartment in the GTA amount to approximately $122,800, or 23.9 per cent of the average price. No wonder so many people are priced out of the market.

Of course, land prices have soared over the past while, and the costs of everything from trade labour to suppliers, materials, administration, engineering, architecture, advertising, public relations and the numerous other services necessary to bring new home communities to market have jumped as well. Add to that the fact that once a developer purchases a piece of land, it can, and usually does, take years to obtain all of the approvals in order to build on it, and you can see why offering new homes and condos at affordable prices is a challenge. Throughout those years, ongoing rising costs push up home prices even further.

Having said all of that, development charges are necessary. Municipalities levy these amounts on new developments to help cover the capital costs of increasing each area’s infrastructure and services. These include sewers, roads, water, local amenities, emergency services, etc., that benefit everyone. It is one thing to say that new home buyers should pay their fair share; it is quite another to say that the development charges that have increased between 236 to 878 per cent since 2004 are “fair.” Over that same period, average wage increases and inflation have not gone up anywhere near that much.

Remember that every year, the building and development industry creates thousands of jobs and contributes billions of dollars to our local, provincial and national economy. According to BILD, every construction crane you see across the GTA represents up to 500 new jobs in construction and related fields.

Before you blame only builders and developers, take a good look at your municipal government and how it collects and allocates funding through development charges. If you think it is unfair, speak up. You elect your municipal politicians, and they should work for you, not against you. Ask candidates what they might do to fix this unfair situation. And before you play the blame game with builders and developers, do some research and look at home prices in the proper context.

BARBARA LAWLOR is president and CEO of Baker Real Estate Incorporated, winner of the pinnacle 2017 Riley Brethour Award from BILD, and an in-demand columnist and speaker. A member of the Baker team since 1993, she oversees the marketing and sales of condominium developments in the GTA and overseas. Keep current with The Baker Blog at blog.bakerrealestate.com

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Toronto Oct 25 18

GTA new home market shows some improvement in September

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GTA new home market shows some improvement in September

Toronto Oct 25 18

The GTA new home market saw increases in September over the previous month, both in terms of new project openings and new home sales, particularly sales of condominiums, according to the Building Industry and Land Development Association (BILD).

There were 1,747 new homes sold in September, according to Altus Group, BILD’s official source for new-home market intelligence – a sizeable increase over August’s 974 new home sales. Condominiums in low-, medium- and highrise buildings, stacked townhouses and loft units accounted for 1,494 new home sales in September, down 20 per cent from September 2017 and down 20 per cent from the 10-year average. Single-family home sales, with 253 detached, linked and semi-detached houses and townhouses (excluding stacked townhouses) sold, were down 28 per cent from last September and down 77 per cent from the 10-year average.

MORE PROJECT OPENINGS

With 10 condominium apartment projects and seven single-family home projects opening in September – a significant increase from August’s two project openings – remaining inventory increased to 13,952 units, comprised of 8,820 condo apartment units and 5,132 single-family units. Remaining inventory includes units in preconstruction projects, in projects currently under construction, and in completed buildings.

“It appears more buyers – and builders – are starting to come in from the sidelines,” says Patricia Arsenault, Altus Group’s executive vice-president, Data Solutions. “The increase from August in both new condominium apartment sales and the number of units in new projects launched was somewhat stronger than the typical September bump alone would suggest.”

NEW HOME SUPPLY

David Wilkes, BILD president and CEO, says it’s all welcome news, but points out that consumers still lack a range of options in the new home market, due to lack of supply. The 8,820 units remaining in the condo apartment inventory represent about five months’ worth of inventory, based on the pace of sales in the past 12 months. A healthy new home market should have nine to 12 months’ worth of inventory.

This shortfall in the supply of condominiums partly accounts for the closing gap between the prices of condos and single-family homes in the GTA. In September, the benchmark price for condo apartments rose again, to $789,643, up 19.4 per cent over the last 12 months. The benchmark price for single-family homes softened again to $1.12 million, down 7.1 per cent over the last 12 months.

MUNICIPAL PARTNERS

“In the lead-up to the municipal elections, BILD succeeded in raising housing supply and affordability as major election issues,” says Wilkes. “Now we look forward to working with our municipal partners to address the barriers that stand in the way of building the housing our region needs to accommodate growth. Some straightforward steps include making sure that government charges on new homes are fair, funding and building critical infrastructure, cutting red tape and speeding up building permits and inspections.”

RELATED READING

GTA mayoral elections – who won and where they stand on housing

6 Ontario municipal elections to watch regarding housing

GTA new home market quiet in August

 

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