September GTA new condo sales on pace with 10 year average

October 31, 2017

Greater Toronto, October 26, 2017 – The market for new construction homes in the GTA picked up in September, primarily driven by sales of multi-family homes, condo apartments in high-rise and mid-rise buildings and stacked townhomes, the Building Industry and Land Development Association (BILD) announced today.

There were 2,101 new homes sold in September, according to Altus Group, BILD’s official source for new-home market intelligence. About 83 percent of them (1,749 units) were multi-family homes, and only 17 percent (352) were low-rise single-family homes such as detached and semi-detached houses and townhomes. Condo sales for September were on pace with the 10 year average of 1,810, while low-rise sales were far below the comparable 10 year average of 1,173.

As of the end of September, 33,871 new homes have been sold in the GTA in 2017, 80 percent of them condo apartments in high-rise and mid-rise buildings and stacked townhomes.

BILD President and CEO Bryan Tuckey said, “the GTA new home market is being driven by the multi-family homes. Year-to-date, there have only been 6,718 new single-family low-rise homes sold, which is a level that we have not seen in more than a decade. This is largely due to government intensification policy and the challenges low-rise builders face in bringing product to market, such as a lack of serviced and approved land.”

While supply of new housing increased again in September and was back above 10,000 units, it is still well below what is considered a healthy level. Supply of new housing is typically measured by the number of new homes available for purchase in builders’ inventories at the end of the month. At the end of September, there were 9,389 multi-family homes and 2,607 single-family homes available in the GTA.

“The recent increase in single-family inventory was the result of more new project launches as well as additional product released at existing sites, both are which are typically up in September,” said Patricia Arsenault, Altus Group’s Executive Vice President of Research Consulting Services. “This increased inventory is setting the stage for some improvement in single-family new home sales this fall. But the launch frenzy that had characterized the market over the past year is over- buyers now feel that they can take a bit of time to shop around, without the fear of losing out.”

Prices of available homes in September were down for single-family low-rise homes and up for multi-family homes. The average for available new single-family homes was $1,204,829 down from $1,289,298 in August, but still 21 percent above last year’s average price of $992,391. The average price for available new detached homes was $1,608,909 and the average for available townhomes was $1,019,470.

Meanwhile the average price of available condo apartments in high-rise and mid-rise buildings and stacked townhomes was $661,188 in September, up from August’s $644,327, and 36 percent more than a year ago. The average price per square foot was $789 and the average unit size was 838 square feet.

September New-Home Sales by Municipality:

September'17

High-Rise

Low-Rise

Total

Region

2017

2016

2015

2017

2016

2015

2017

2016

2015

Durham

13

77

18

84

307

158

97

384

176

Halton

321

159

123

134

86

91

455

245

214

Peel

404

355

56

70

216

414

474

571

460

Toronto

954

2028

868

7

43

31

961

2071

899

York

57

163

181

57

643

463

114

806

644

GTA

1749

2782

1246

352

1295

1157

2101

4077

2403

Source: Altus Group

 

With more than 1,450 members, BILD 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.