Tag Archives: housing prices

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Industry Report: Building Industry Continues to be Undervalued by Government

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Industry Report: Building Industry Continues to be Undervalued by Government

Despite considerable efforts, we have not succeeded in achieving a full, public understanding of the reasons why housing prices are so high

Writing this — my last column for HOMES Publishing Group — conjures bittersweet feelings for me since I retired from the Building Industry and Land Development Association (BILD) on January 1.

What brought me to BILD was the desire to have a positive impact on public policy. I thought this industry should have a voice that is heard by government decision makers. I wanted to elevate the debate that public policy is contributing to the cost of homes in the GTA.

As the president and CEO of BILD, I had the constant support of the members, the board of directors and BILD staff, all who allowed me to tell the industry’s story and do what was right. Their patience allowed me to persevere and to execute my vision, while having fact-based discussions.

I am proud of the progress we have made over the past five years. However, my biggest frustration is how undervalued the industry continues to be perceived by the province of Ontario and many municipalities.

Despite our considerable efforts, we have not succeeded in achieving a full, public understanding of the reasons why housing prices are so high in this region. Housing affordability and the ability to own a home are important components in quality of life, which — along with livelihood — are at risk for our future generations.

The residential and land development industry is one of the most regulated in the country and the prices of homes reflect the policy our industry must follow, and how those policies are implemented. At some point, policy makers will have to say “our policies are creating outcomes that are not in the public interest,” and they will have to listen to the experts that are responsible for building communities. Because what the development and building industry wants to do is to build homes people can afford to purchase — especially first-time buyers.

I have advocated for a streamlined approvals process, shovelready land with proper infrastructure and to update out-of-date zoning bylaws. It is time for all governments to show a true commitment to their promises to make things happen and enact policies that meet the challenges of the rapidly growing population. With that, housing people can afford to purchase may continue to be a reality.

I want to leave this message for young people and new residents who choose to make their homes in this great region: No matter how difficult the situation may seem, continue to maintain the dream of homeownership.

Looking back, what I am most proud of is that BILD has never been more stable from a business perspective with the purchase of the home shows in the GTA. This will enable the organization to be a champion of the industry and have an impact on public policy in Ontario for years to come.

Another important advancement for the building industry occurred on January 1, 2015, when our advocacy efforts were rewarded when the provincial government approved the construction of six-storey wood buildings. It will take time to see the true impact of this policy change, but initial results are very encouraging.

In closing, the best part of my five years has been the amazing people I have met and the wonderful relationships I forged. We really do work in the best industry, in the best city, in the best province and in the best country in the world.

BRYAN TUCKEY is President and CEO of the Building Industry and Land Development Association (BILD) and is a land-use planner who has worked for municipal, regional and provincial governments. He can be found on Twitter (twitter.com/bildgta), Facebook (facebook.com/bildgta), and BILD’s official online blog (bildblogs.ca).

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Price of new detached homes in the GTA approaching $2 million

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Price of new detached homes in the GTA approaching $2 million

In May, the GTA’s new housing market showed few signs of slowing down, especially the condominium segment, the Building Industry and Land Development Association (BILD) announced Monday.

Sales of new multi-family homes, condo apartments in highrise and midrise buildings and stacked townhomes continued to be strong and the prices for available units increased substantially, according to Altus Group, BILD’s official source for new-home market intelligence.

Prices of available homes in the lowrise single-family sector were also up but the pace of increase was not as dramatic as in recent months.

“For the new homes market, the province’s fair housing plan has had little real effect,” said BILD president and CEO Bryan Tuckey. “Prices continue to increase and supply, especially for single-family lowrise homes, continues to be low. The price acceleration in the condo portion of the market is especially worrisome since it not only represents the lion’s share of new housing in the GTA, it’s also making it difficult for condos to remain the affordable option.”

About 86 per cent of the 3,902 new homes sold last month were multi-family condo apartments in highrise and midrise buildings and stacked townhomes, while only 14 per cent were lowrise single-family homes.

There were 3,357 sales of new condos in May, slightly fewer than a year ago, but 61 per cent above the 10 year average. The 545 sales of new single-family lowrise homes was a 76 per cent drop from last year and 68 per cent off the 10 year average.

This year is proving to be a very strong year for sales of new homes, with record year-to-date sales. Three out of four of the 22,814 new homes purchased in the GTA so far this year were condo apartments.

The average price of available new condo apartments was up more than $30,000 from April. May’s $604,683 average price marked a 33 per cent increase from a year ago. The average available unit was 814 square feet and the average price per square foot was $743. A year ago, the average price per square foot was $573.

In May, the average price of available new lowrise homes was $1,222,699, an increase of about $10,000 from April and a 40 per cent increase from a year ago.

For the first-time, the average asking price for available new townhomes surpassed the million-dollar mark. Available new detached homes reached that milestone only 14 months ago. In May, the average asking price for available detached homes in the GTA was $1,942,316, while the average price for available semi-detached was $919,231 and for townhomes was $1,002,220.

The supply of new homes, the number of homes available to buyers in builders’ inventories at the end of the month, increased modestly in May but it was still far below a healthy level and it was 8,000 units less than a year ago.

At the end of May, there were 10,820 new homes available to buyers in the GTA, of which 9,406 were condo apartments and 1,414 were lowrise single-family homes. Last month there were 9,387 new homes available to buyers and a year ago there were 19,209 available in builders’ inventories. In May 2006, there were 29,754 new homes in builders’ inventories, of which 16,420 were low-rise single-family homes.

“The combination of lower sales, some increase in inventory and slower price growth in May compared to April was the first hint we have had of some hesitation among potential buyers of single-family homes,” says Patricia Arsenault, Altus Group’s executive vice president of research consulting services. “But in the condominium apartment sector, it was still full steam ahead in May. Sales were steady and prices posted strong increases, meaning the increase in available inventory in May was not due to wavering demand but rather the burst in new condo project openings. Over 4,900 new units were brought to the market, almost twice as many as in the previous month, and many were in projects that launched near month end.”

http://www.bildgta.ca/

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Co-living could be answer to GTA housing crunch

Co-living could be answer to GTA housing crunch

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Co-living could be answer to GTA housing crunch

Toronto Star

The watchwords for the GTA real estate markets in 2017 will be adaptation and innovation, as residents, the building industry and governments alike face the challenges of ceaseless demand, limited supply and record-high house pricing.

Housing affordability has never been a more critical concern.

In 2016, the average house in the GTA made more money than the average household, with detached home prices breaking the $1 million mark and ending last year at $1,016,145 — a mind-boggling 23.1 per cent spike year-over-year, according to the Toronto Real Estate Board.

https://www.thestar.com/life/homes/2017/01/28/co-living-could-be-answer-to-gta-housing-crunch.html


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Greenbelt forcing up homes prices in GTA: Critics

Greenbelt forcing up homes prices in GTA: Critics

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Greenbelt forcing up homes prices in GTA: Critics

Toronto Sun

The Greenbelt has become a developmental noose around the GTA, forcing up home prices and squeezing out a new generation of buyers, critics say.

While there are many factors affecting GTA house prices, those in the industry of building and selling homes point to the Greenbelt as a key cost driver.

Tim Hudak, CEO of the Ontario Real Estate Association (OREA), said Vancouver has limited land available because it’s bordered by ocean and mountains, leading to the highest house prices in the country.

“But in the Toronto area, the government’s created its own artificial barriers that are spiking prices,” he said. “So if we don’t address that, then I do worry that young people won’t be able to find a home of their own, and secondly, it will slow down economic activity.”

http://www.torontosun.com/2017/01/28/greenbelt-forcing-up-home-prices-in-gta-critics


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Toronto house prices not fuelled by foreign funds: TREB

Toronto house prices not fuelled by foreign funds: TREB

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Toronto house prices not fuelled by foreign funds: TREB

Toronto Star

Don’t blame overseas investors for the high price of housing in the Toronto area, says the city’s real estate board.

The Toronto Real Estate Board (TREB) released new research Tuesday showing only 4.9 per cent of the 113,133 residential real estate transactions in the Toronto region last year involved foreign buyers.

More than half of those buyers were purchasing homes for themselves or family members, according to an October Ipsos poll of more than 3,500 TREB members, who acted on behalf of those buyers.

https://www.thestar.com/business/2017/01/31/toronto-house-prices-not-fuelled-by-foreign-funds-treb.html


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BILD

Housing prices continue to grow as supply trends downwards: BILD

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Housing prices continue to grow as supply trends downwards: BILD

Lack of new housing supply continues to escalate prices and average prices for both new single-family detached houses and highrise condos in the GTA reached unprecedented levels in November, the Building Industry and Land Development Association (BILD) announced.

The number of new homes available for purchase in the GTA continues to be around all-time lows. At the end of November, there were 15,184 new homes in builders’ inventories, only 84 more than in August, which reported the lowest level on record. Housing supply has plummeted over the past decade. In November 2006 there were 31,150 new homes available for sale according to Altus Group, BILD’s official source for new home market intelligence.

Only 13 per cent of the available inventory at the end of last month was lowrise homes with just 2,036 units and of those 789 were detached single-family houses. Available highrise supply was also down in November, falling to 13,148 units.

“The low inventory story is not only about lowrise – highrise inventories have been on a downward path over the past three years,” said Patricia Arsenault, executive vice president of research consulting services at Altus Data Solutions. “Total available inventory in November was the lowest November level we have seen since we first started to track this data in 2000.”

Low levels of inventory resulted in record-setting prices for detached homes and highrise condominiums in November. The average price of new condos in the GTA reached $493,137, a 10 per cent increase from a year ago. Condo unit size continued to increase with the average in November at 820 square feet.

Meanwhile, the average price of new detached homes in the GTA hit $1,230,961 in November, up 27 per cent from last year. Since the beginning of the year, new detached single-family homes in the GTA have gone up by more than $258,000.

Overall, average prices for new lowrise homes, which includes detached and semi-detached houses as well as townhomes, increased 20 per cent over the past 12 months. In November, a buyer needed $977,890 to buy the average lowrise home.

“The industry is building to government policy and building far fewer lowrise homes, especially detached single-family homes, but demand has not dropped with the supply so prices continue to increase,” said Michelle Noble, vice president of communications, marketing and media relations at BILD.

So far this year there were 8,843 detached homes sold in the GTA, which is 16 per cent fewer than in 2015. At this time 10 years ago, 12,273 detached homes were sold across the region.

Overall there have been 43,651 new homes sold in 2016 with highrise accounting for 60 per cent, or 26,299 homes, and lowrise totalling 17,352 homes.

bildgta.ca

bildblogs.ca


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