GTA condo prices rise amid low supply of single-family homes
Tuesday Mar 27th, 2018
The benchmark price of new condo apartments in the Greater Toronto Area rose to $729,735 in February.
That means a year-over-year increase for condos apartments in low, medium and high-rise buildings, stacked townhouses, and lofts; of 39.5%.
The Building and Land Development Association (BILD) says figures from Altus Group for single-family homes showed a year-over-year rise to $1,229,454, up 12.8%, although this was down more than $9,000 from January. The price analysis includes detached, linked and semi-detached houses and townhouses (excluding stacked townhouses).
Supply remains constrained despite a month-over-month increase. There were 12,896 newly-constructed homes available in February including 9,285 condos and 3,611 single-family homes.
"While single-family new home inventory is up from last year, it is still quite low in historical terms," said Patricia Arsenault, Altus Group's Executive Vice-President, Research Consulting Services. "Moreover, there is a dearth of new single-family product that is affordable to a broader range of buyers – fewer than one in five single-family homes available to purchase at the end of February were priced below $750,000."
Sales of new homes in the GTA were down compared to a year ago with 2,159 sold. There was an 82% drop in single-family home sales (264) while condo sales were down 50% (1,895). However, condo sales were 17% above 10-year average while single-family sales were 79% below.
BILD president and CEO David Wilkes said excessive red tape, out-of-date zoning, and lack of suitable development land is restricting builders’ efforts to increase new home supply in the GTA.
"That is why, as the municipal elections approach, we'll be initiating public conversations about ways policy makers, urban planners, our industry and residents can work together to address the GTA's housing supply challenge," he said.