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GTA new home sales

GTA new home sales in July remain strong

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GTA new home sales in July remain strong

GTA new home sales

It was a busy month by July standards, as sales for both condos and single-family homes were up year-over-year, according to the latest statistics from the Building Industry and Land Development Association (BILD).

There were 566 new single-family homes, including detached, linked and semi-detached houses and townhouses, sold in July, according to Altus Group, BILD’s official source for new home market intelligence. Although sales increased 136 per cent from last July, they were 29 per cent below the 10-year average.

Sales of new condominium apartments in low-, medium- and highrise buildings, stacked townhouses and loft units, with 2,297 units sold, were up 22 per cent from July 2018 and 42 per cent above the 10-year average.

Brisk openings

“Typically, buyers take a bit of a vacation from the new condo apartment market in July” says Patricia Arsenault, Altus Group’s executive vice-president, Data Solutions. “This year was no different, although the decline in sales was less pronounced than usual, resulting in the second strongest July on record. While few new projects launched in July, sales at projects opened in June were brisk.”

The benchmark price of new condominium apartments increased from last month, to $838,824, up 8.3 per cent over the last 12 months. The benchmark price of new single-family homes decreased slightly from last month, to $1.09 million, down 4.5 per cent over the last 12 months, continuing its moderating trend in 2019.

ALSO READ: Detached home sales and prices roar back to life in first half of 2019 – ReMax

Strong July sales, paired with traditional fewer summer openings, saw inventory decrease in July to 12,873 condominium units and 4,409 single-family homes. Remaining inventory includes units in preconstruction projects, in projects currently under construction and in completed buildings.

Total new home sales in the first seven months of 2019, at 20,268 units sold, are up 45 per cent from the same period in 2018 and nine per cent below the 10-year average.

Price gap narrows

“The price gap between single-family homes and condos continues to shrink, leaving new-home buyers with a lack of choice,” says David Wilkes, BILD president and CEO. “We must provide more ‘missing middle’ type development that can support transit in established neighbourhoods. More ‘gentle density’ housing in the form of midrise buildings, condos with street level retail, and stacked townhouses is needed to give consumers more choice.”

 

New home sales by municipality, July 2019

Municipality Condominium units Single-family homes Total
Region 2019 2018 2017 2019 2018 2017 2019 2018 2017
Durham 29 6 27 118 44 60 147 50 87
Halton 59 46 18 82 25 18 141 71 36
Peel 415 150 148 142 87 0 557 237 148
Toronto 1,522 1,557 1,118 46 8 6 1,568 1,565 1,124
York 272 120 461 178 76 34 450 196 495
GTA 2,297 1,879 1,772 566 240 118 2,863 2,119 1,890

Source: Altus Group

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Detached home sales and prices roar back to life in first half of 2019 – ReMax

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Detached home sales and prices roar back to life in first half of 2019 – ReMax

The bounce-back in single-detached home sales is contributing to an uptick in average price, with more than 50 per cent of neighbourhoods in the Greater Toronto Area reporting an increase in detached housing values the first half of 2019, according to a new report from Re/Max of Ontario-Atlantic Canada.

Re/Max examined trends and developments in 65 Toronto Real Estate Board (TREB) districts, finding that detached home sales were up in almost 88 per cent of markets, while prices were up in 51 per cent of markets between January and June 2019, compared to the same period one year ago. The 905 area saw the greatest increase in homebuying activity, with all 30 areas reporting rising detached home sales, and 43 per cent of 905 communities experiencing price appreciation. Meanwhile, in the 416, just 20 of the 35 districts experienced an uptick in sales, while detached home prices increased in 57 per cent of neighbourhoods.

“Detached housing is finally back on track, with year-to-date sales almost 17 per cent ahead of last year’s levels, signaling a return to more normal levels of home-buying activity,” says Christopher Alexander, executive vice-president and regional director, ReMax of Ontario-Atlantic Canada. “Market share is also climbing, with detached homes now representing 45.7 per cent of all home sales in the Greater Toronto Area, up from 43.1 per cent one year ago.”

While improving affordability is the catalyst in the uptick in detached home sales, Re/Max says location is equally important, as first-time and trade-up buyers move to secure prime real estate before values are on the move again.

Top 5 detached home markets in 416 by price growth, first half of 2019

Neighbourhoods

Average price

% increase

1. (E01)
North Riverdale
South Riverdale
Blake-Jones
Greenwood-Coxwell

$1.38M

15.2

2. (C01)
Trinity-Bellwoods
Palmerston-Little Italy
Niagara
Little Portugal
Kensington-Chinatown
Dufferin Grove

$1.95M

12.8

3. (C11)
Leaside
Thorncliffe Park

$2.19M

11.2

4. (E04)
Dorset Park
Wexford-Maryvale
Clairlea-Birchmount
Ionview
Kennedy Park

$836,585

7.8

5. (W02)
Junction
High Park North
Runnymede-Bloor,
West Village
Lambton-Baby Point
Dovercourt-Wallace
Emerson-Junction

$1.41M

7.1

Source: Re/Max of Ontario-Atlantic Canada; E01, C01, C11, E04, W02
are TREB market districts (trebhome.com)

Top 5 detached home markets in 905 by price growth first half of 2019

Neighbourhoods Average price % increase
1. Uxbridge
2. Milton
3. Halton Hills
4. Brampton
5. Ajax
$895,490
$903,359
$842,864
$835,435
$728,923
6
4.3
3.6
2.8
2.5

Source: Re/Max of Ontario-Atlantic Canada

Despite strong demand in these hot-pocket areas, approximately 45 per cent of districts within the 416 are in a technical buyers’ market, with a good selection of homes listed for sale. ReMax says select neighbourhoods north of Bloor offered greater flexibility in terms of negotiation – this is especially true when average price topped $2 million – while market conditions were tightest south of Bloor Street.

“Heated demand clearly exists for single-detached housing south of Bloor Street, but there are pockets throughout the 416 that are scorching hot,” says Alexander. “The Oakwood-Vaughan area in C03, where homes can still be had for just over the $1-million price point, is one of those neighbourhoods, while C10, comprised of Sherwood Park, Mount Pleasant West, Mount Pleasant East, is another. The Junction Area, High Park North, and Runnymede-Bloor West Village (W02) in the west end, and Leslieville (E01) and the Beach (E02) in the east, are also highly sought-after, with proximity to transportation and vibrant shopping avenues the common denominators drawing younger buyers.”

Top performers in terms of unit sales were markets offering single-detached homes at less than the $1-million price point. Scarborough’s L’Amoreaux, Tam O’Shanter-Sullivan, Steeles neighbourhood (E05) saw the most significant upswing in terms of percentage increase in sales, with the number of homes sold up 76.2 per cent to 148 units.

“With recovery well underway in the detached housing segment, the residential real estate market is starting to fire on all cylinders,” says Alexander. “The possibility of more relaxed mortgage rules down the road – in conjunction with today’s low interest rate environment – may serve to spark up the GTA housing market yet again.”

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