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New home market sees prices holding steady

New home market sees prices holding steady

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New home market sees prices holding steady

Sales of new homes in the GTA slowed down in July while prices held steady, the Building Industry and Land Development Association (BILD) announced last week.

Total July new home sales of 1,071 units were down 44 per cent from last July and down 55 per cent from the 10-year average, according to Altus Group, BILD’s official source for new home market intelligence. Sales of new condominium apartments in low, medium and highrise buildings, stacked townhouses and loft units, at 855 units sold, were down 52 per cent from July 2017 and down 40 per cent from the 10-year average.

Sales of new single-family homes, including detached, linked and semi-detached houses and townhouses (excluding stacked townhouses), at 216 units sold, were up 85 per cent from last July — a month that saw the lowest single-family home sales in decades, with 117 units sold — but still 77 per cent below the 10-year average.

The benchmark price of new condominium apartments was $774,759, up 16.5 per cent from last July, but virtually unchanged from last month. The benchmark price of new single-family homes was $1,142,574, down 13.2 per cent from last July and just 0.85 per cent above last month.

“New home sales in the GTA typically take a breather in the summer months compared to the spring,” explained Patricia Arsenault, Altus Group’s executive vice president. “This July was no exception, although minimal new project launches in July, along with declining affordability of new condominium apartments due to recent price escalation, amplified the June-to-July decline in sales somewhat this year.”

With only two projects opening in July, the total remaining new home inventory decreased to 14,784 units, comprised of 9,931 condo apartment units and 4,853 single-family units. Remaining inventory includes units in preconstruction projects, in projects currently under construction and in completed buildings.

“We are still seeing a shortfall in condo apartment inventory,” said Dave Wilkes, BILD president and CEO. “Given the current pace of sales, we should have nine to 12 months worth of inventory, but we only have five. We expect that more condo apartment product will become available in the fall.”

Wilkes added that affordability remains an issue for many buyers.

“The prices of new homes are affected by, among other factors, the fees, taxes and charges added by all levels of government,” he said. “Municipalities have the most direct influence over affordability and supply of new housing, so leading up to the October 22 municipal elections, we are inviting people to send an email to their local candidates, asking them to make housing a priority.”

July New Home Sales by Municipality**:

July 2018 Condominium Apartments Single-family Total
Region 2018 2017 2016 2018 2017 2016 2018 2017 2016
Durham 9 27 162 44 60 376 53 87 538
Halton 40 18 76 21 13 45 61 31 121
Peel 147 148 180 88 0 101 235 148 281
Toronto 568 1,134 1,645 1 9 114 569 1,143 1,759
York 91 471 187 62 35 286 153 506 473
GTA 855 1,798 2,250 216 117 922 1,071 1,915 3,172

Source: Altus Group


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Record October 2017 for new condo sales

Record October 2017 for new condo sales

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Record October 2017 for new condo sales

Average price for available new detached homes rises to $1,548,888

New construction home sales soared in the GTA in the month of October, primarily driven by sales of multi-family homes, condo apartments in highrise and midrise buildings and stacked townhomes, the Building Industry and Land Development Association (BILD) announced November 24.

There were 5,377 new homes sold in October, according to Altus Group, BILD’s official source for new home market intelligence. About 91 per cent of them (4,884 units) were multi-family homes and only 9 per cent (493) were lowrise single-family homes such as detached and semi-detached houses and townhomes. Condo sales for October were 81 per cent above the 10-year average of 2,697, and the highest October yet recorded, while lowrise sales were 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, 82 per cent of them condo apartments in highrise and midrise buildings and stacked townhomes.

“October data shows that the new homebuyer is left with very little choice when it comes to purchasing a new home,” said BILD president and CEO Bryan Tuckey.

“Provincial intensification policy has our members building more high and midrise 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 lowrise homes.”

While supply of new housing increased again in October and reached 12,500 units, it 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. At the end of October, there were 9,308 multi-family homes and 3,192 single-family homes available 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,” said Patricia Arsenault, Altus Group’s executive vice president of research consulting services.

Prices of available new homes in October increased slightly for both single-family lowrise homes and multi-family homes. The average for available new single-family homes was $1,217,428 up from $1,204,829 in September, and 29.8 per cent above last October’s average price of $937,689. The average price for available new detached homes was $1,548,888 and the average for available new townhomes was $995,571.

Meanwhile the average price of available new condo apartments in highrise and midrise buildings and stacked townhomes was $677,456 in October, up from September’s $661,188. The average price per square foot was $791 and the average unit size was 857 square feet.

October 2017

Highrise

Lowrise

Total

Region

2017

2016

2015

2017

2016

2015

2017

2016

2015

Durham

15

97

26

209

329

325

224

426

351

Halton

158

375

199

75

514

246

233

889

445

Peel

89

203

174

62

178

486

151

381

660

Toronto

3,994

1,509

2,307

2

22

66

3,996

1,531

2,373

York

628

687

573

145

625

695

773

1,312

1,268

GTA

4,884

2,871

3,279

493

1,668

1,818

5,377

4,537

5,097

Source: Altus Group



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