The Greater Toronto Area continues to enjoy strong demand for homes according to a new report from two industry bodies. The Building Industry and Land Development Association (BILD) and the Toronto Real Estate Board (TREB) have issued their first ever joint briefing on the state of the housing market. It shows that there were 124,123 new homes sold through the MLS in the first 10 months of 2015, consistent with the 10-year average but the new inventory was dominated by high-rise condos. Builder inventory of low-rise homes was 4,980 at the end of October which is a near-record low.
The average price of a new low-rise home as of October 31, 2015 was $802,376 - more than double the average price in 2005, which was $387,369. A similar trend has been noted for MLS transactions. The MLS HPI Single-Family Benchmark Price increased to $669,400 in October 2015 from $363,100 in October 2005.
"As an industry we continue to find innovative ways to provide a range of housing choices," said BILD Chair Steve Deveaux, vice-president of Tribute Communities. "But it is becoming increasingly challenging to design, build and sell the homes that many people – especially first-time buyers – want to and can afford to purchase.”
The development industry is building more condominiums than it did a decade ago, but as the GTA continues to grow by up to 100,000 people every year, demand for low-rise homes has not decreased. Deveaux said that demand for detached, semi-detached and townhomes is outpacing supply, which is limited due to a lack of serviced land designated for development.
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