New home sales and prices continue strong performance

GTA new home prices and sales continue to be strong performers, while other developments in the building industry are revealing some new trends in certain home categories.The new home market continues to perform above the 10-year average after three quarters, according to the Building Industry and Land Development Association (BILD).According to RealNet Canada Inc., BILD’s official source for new-home market intelligence, there were 30,143 sales of new homes and condominiums across the region as of Sept. 30 – up 54 per cent from last year and sitting nine per cent above the 10-year average.“This continued increase in new-home sales shows that purchasers remain confident in the market,” says BILD president and CEO Bryan Tuckey. “With the GTA experiencing an annual growth of up to 100,000 people, it is important that the industry builds approximately 35,000 homes each year so that they have a place to live.”Highrise sales in September resulted in the third-best on record, while sales of ground-related homes increased 39 per cent from September 2013.The RealNet New Home Price Index for lowrise housing increased five per cent to $689,611 for a new record high. Meanwhile, the highrise market grew four per cent to $450,014.With the price of new lowrise homes in the GTA approaching $700,000, more prospective buyers are looking at more affordable options.Condos are the obvious choice for many, and the favoured home type for many first-time buyers. Prospective buyers in the GTA may be happy to learn that developers are building more two-bedroom units – a preferred choice. The number of two-bedrooms has climbed to 41 per cent this year, compared to 31 per cent in 2011, according to RealNet. But these condos come at a cost – unit sizes are trending down, while prices continue to rise.Townhomes have also become an increasingly popular new home option due to the rising prices of new detached homes in recent years. But prices of towns are expected to rise significantly over the next few years, due to record highs in land acquisition costs, says Carras. Land prices for medium density housing hit $2 million per acre in the third quarter of 2014, up from about $1.5 million in 2012 and slightly more than $1 million in 2011.