Further proof that property investment in this one hot market has been a solid choice – as if it was really needed.
The average price of a low-rise home in the Greater Toronto has more than doubled since 2006, according to the Building Industry and Land Development Association (BILD).
The average price in June 2016 was $887,543, up from $393,398 ten years ago.
A great deal of the those price gains were made recently.
Over the past year, average prices for all low-rise homes in Toronto jumped by over $100,000; the average price was $785,800 last June.
Constrained supply has helped bolster prices and, as a result, the price of lowrise homes has skyrocketed, according to BILD.
“The supply situation was very different a decade ago. There were 29,968 new homes in builders' inventory in June 2006, of which 16,560 were low-rise and 13,408 were high-rise homes,” BILD said in a release. “The story for detached homes is the most dramatic. On June 30 there were 1,002 single detached homes in the GTA, down from 10,823 a decade ago. The average price of a detached home in June 2016 was $1,061,388, compared to $442,420 in June 2006.”
Inventory fell to 18,427 in June and condos make up 16,363 of those units. Low-rise supply, meanwhile, was a paltry 2,064 last month.
"Supply of new low-rise homes has declined dramatically in the last 10 years due to government policy," Noble said. "Demand for ground-related homes is far outpacing supply, with some projects selling out just hours after launching."