The average price of new detached homes in the Greater Toronto Area has surpassed $1 million for the first time, the Building Industry and Land Development Association (BILD) announced today.
As of March 31, the average price of new detached homes available for sale in the GTA was $1.045 million, according to Altus Group, BILD’s official source for new-home market intelligence.
The new detached home average price has grown by 21 per cent in 12 months, and in the last decade has more than doubled. In March 2015, the average was $861,848, and in March 2006 it was $439,294.
BILD President and CEO Bryan Tuckey attributes much of the dramatic price increase to the supply of new housing not keeping pace with demand due to government intensification policies and a lack of serviced developable land.
“The demand for detached homes is far outpacing supply as the GTA’s population continues to grow,” says Tuckey. “Our region has record-low levels of new detached homes available for sale, which drives up prices and reduces housing choice for consumers.”
There were 905 detached homes sold in March, down nine per cent from March 2015 and three per cent below the 10-year average. As of March 31, across the entire GTA, there only 1,634 new detached homes available for sale in remaining inventory. In March 2006, there were 11,149 detached homes in remaining inventory.
The home building and land development industry continues to meet the province’s intensification requirements, Tuckey says, and is building more townhomes and highrise condos. Still, demand for new detached homes remains strong.
The average price for all lowrise homes, including townhomes and semi-detached homes, also set a new record in March, reaching $849,312. This is a 15-per-cent increase from March 2015.
The average price of a new townhome reached $672,419, while new semi-detached homes averaged $612,487.
“New lowrise homes are being purchased faster than they can be brought to market,” Tuckey says. “As long as demand for lowrise homes continues to outpace supply, we will continue to see rapid price growth.”
There were 2,032 lowrise homes sold in March, an increase of 16 per cent from March 2015, and 26 per cent more than the 10-year average. As of March 31, there were only 3,036 homes in remaining inventory, a new record low. Ten years ago there were 16,757 lowrise homes in remaining inventory.
With many first-time buyers unable to afford a lowrise home, the highrise market provides a more affordable option.
The average price of a new highrise home increased two per cent from March 2015 to $459,231. On a price per square foot basis, prices increased four per cent to $582.
The highrise market recorded 1,560 new home sales in March, down 22 per cent from March 2015, and 12 per cent below the 10-year average.
Meanwhile, highrise inventory decreased to 18,280 across the GTA.