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Low-rise housing supply continues to slide

Greater Toronto, September 24, 2015 - The supply of new low-rise homes continued to decline across the GTA in August, the Building Industry and Land Development Association (BILD) announced today.

The amount of new detached, semi-detached and townhomes available for sale in the GTA fell to a new low of 4,298 homes last month, according to RealNet Canada Inc., BILD's official source for new-home market intelligence. High-rise supply decreased slightly as well, bringing total inventory of new homes down to 23,057.

Low supply impacted new-home sales across the region. Low-rise sales, which include detached, semi-detached and townhomes, declined 25 per cent from August 2014. Sales of high-rise condos were down 24 per cent from August of last year.

"Demand for new homes is outpacing supply across the GTA," said BILD president and CEO Bryan Tuckey. "Constrained supply of serviced, developable land has significantly limited inventory of new homes, and you can't sell what you don't have.

"There were a number of new project launches in the first half of 2015, but most of the homes were purchased shortly after they came on the market," said Tuckey, adding that "traditionally there are fewer new launches in August, and it also impacts sales."

The RealNet New Home Price Index showed a small decline in the average price of low-rise homes for the first time in 19 months.  Prices in August 2015 averaged to $800,099 compared to 806,395 in July 2015.

Tuckey also attributes this to the seasonal slowdown and adds that low-rise prices are still 16 per cent higher than August 2014.

The index showed little change in the average price of high-rise homes. Prices in August 2015 averaged to $450,837 compared to $446,398 in July 2015.

Prices in the high-rise market have remained stable over the past year, showing a modest increase of 1 per cent since August 2014.

The decrease in August sales was consistent across all GTA regions, with the exception of Peel, which recorded a modest increase from August 2014. Meanwhile year-to-date sales across the GTA have remained above average, with total new-home sales sitting 13 per cent above the 10-year average at 27,416 homes. 

Monthly New-Home Sales by Municipality:

August '15

Low Rise

High Rise

Total

Region

2013

2014

2015

2013

2014

2015

2013

2014

2015

Durham

139

202

113

6

19

49

145

221

162

Halton

111

140

81

40

79

45

151

219

126

Peel

269

361

377

45

53

71

314

414

448

Toronto

27

64

11

511

967

649

538

1,031

660

York

266

389

287

98

197

187

364

586

474

GTA

812

1,156

869

700

1,315

1,001

1,512

2,471

1,870

Jan-Aug

7,684

12,357

14,193

9,176

14,017

13,223

16,860

26,374

27,416

Source: RealNet Canada Inc.

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With more than 1,450 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.

A statistical backgrounder is available for viewing. For additional information, contact Andrei Zaretski at 416-391-3450 or 416-843-4898; or Amy Lazar at 416-391-3452 or 416-543-3903