August 21 - Low-rise market suffers from low supply

August 21, 2012

Low-rise market suffers from low supply

GREATER TORONTO, Aug. 21, 2012 - New home buyers in the GTA purchased 2,266 new homes and condominiums this July, the Building Industry and Land Development Association (BILD) reported today.

According to RealNet Canada Inc., BILD's official source of new home market intelligence, the 1,415 new condominiums sold across the GTA in July are slightly more than the long-term average for that month. Meanwhile, sales of new low-rise homes have dropped to less than half of the long-term average at 851.

"The Province of Ontario's recent emphasis on intensification has resulted in a shortage of land supply, bringing inventory levels in the low-rise sector to record-low levels," explained BILD President and CEO Bryan Tuckey. "You can't sell what you don't have, and while the high-rise sector is there to help satisfy demand, new home buyers in the GTA end up suffering from a lack of options when it comes to housing type."

The lack of new low-rise housing supply in the market has reduced detached, semi-detached and townhome sales to just 37 per cent of total new homes sold in the GTA this July.

The RealNet New Home Price Index currently shows a price gap of more than $175,000 between high-rise and low-rise, with the average cost of a low-rise home in the GTA up to $613,090.

A statistical backgrounder on new home sales in July 2012 can be found here. Contact Andrei Zaretski at azaretski@bildgta.ca or Amy Lazar at alazar@bildgta.ca for more information.

July '12

  Low Rise  

  High Rise  

  Total  

Region

2010

2011

2012

2010

2011

2012

2010

2011

2012

Durham

179

178

124

2

4

20

181

182

144

Halton

54

213

120

21

66

41

75

279

161

Peel

162

261

350

333

61

289

495

322

639

Toronto

42

73

49

662

1,065

882

704

1,138

931

York

283

473

208

220

420

183

503

893

391

GTA

720

1,198

851

1,238

1,616

1,415

1,958

2,814

2,266

Jan-July

10,213

10,829

10,102

11,418

16,089

12,906

21,631

26,918

23,008

Source: RealNet Canada Inc.

With more than 1,375 members, BILD, formed through the merger of the Greater Toronto Home Builders' Association and Urban Development Institute/Ontario, is the voice of the land development, home building and professional renovation industry in the Greater Toronto Area.  BILD is proudly affiliated with the Ontario and Canadian Home Builders' Associations.

-30-

For further information:
Amy Lazar
Manager, Communications                                                 
416-391-3452 or 416-543-3903                                             
alazar@bildgta.ca                                                        

Andrei Zaretski
Manager, Marketing & Media Relations
416-391-3450 or 416-843-4898
azaretski@bildgta.ca