September 23 - Low-rise prices continue to climb as sales hit record lows

September 23, 2013

Low-rise prices continue to climb as sales hit record lows

Greater Toronto, September 23, 2013 - New home sales in the GTA remained low in August while prices in the low-rise sector rose to a new record high, the Building Industry and Land Development Association announced today.

According to RealNet Canada Inc., BILD's official source for new home market intelligence, the 633 new high-rise homes sold in the GTA added up to the lowest August in a decade and 46 per cent below the long-term average.

The low-rise market showed some strength when compared to 2012, but the 777 sales of new detached, semi-detached and townhomes still totalled the third-lowest in 10 years and 43 per cent below average. Meanwhile the price index in the low-rise sector reached a new record high of $658,938.

"Constrained land supply has severely diminished inventory in the low-rise sector, bringing prices to a considerable increase. Another factor is the rising government fees and charges which, on average, add up to one-fifth of the cost of a new home," said BILD President and CEO Bryan Tuckey, who explained that new home pricing also affects prices of existing homes. "Affordability continues to be a challenge for everyone looking to buy a ground-related home in the GTA."

The price gap between the high-rise and low-rise sectors has grown to the highest on record at $222,149 with prices of high-rise homes remaining steady. 

statistical video analysis of August new home sales is available for viewing. For additional information, contact Amy Lazar or Andrei Zaretski.

August '13

Low Rise

High Rise

Total

Region

2011

2012

2013

2011

2012

2013

2011

2012

2013

Durham

205

120

127

7

13

6

212

133

133

Halton

610

76

111

282

16

55

892

92

166

Peel

282

254

286

61

65

44

343

319

330

Toronto

47

19

21

1,013

589

451

1,060

608

472

York

383

119

232

560

89

77

943

208

309

GTA

1,527

588

777

1,923

772

633

3,450

1,360

1,410

Jan-Aug

12,344

10,558

7,648

17,996

13,207

9,127

30,340

23,765

16,775

Source: RealNet Canada Inc.

With more than 1,400 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 more information, contact:

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

or

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