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GTA Still a Tale of Two Markets

The Building Industry and Land Development Association recently posted the following article explaining the two radically different new construction markets in the GTA, the high-rise and low-rise markets. 

“The GTA’s tale of two markets was even more prevalent in the tally of new home sales in January 2013, the Building Industry and Land Development Association announced.

In the high-rise market, new home buyers are still looking for and finding quality, affordable homes across the GTA. Choice in the high-rise market is a direct result of provincial public policy which has resulted in an ever increasing emphasis on intensification, and the industry is adapting to the shift.

In January, new home buyers purchased 686 high-rise homes, most of which were sold in the City of Toronto. Buyers interested in owning a new condominium in the 905 found a variety of projects in York Region as well.

The tale of the low-rise market is illustrated by constrained land supply and a lack of product and choice. According to RealNet Canada Inc., BILD’s official source of new home market intelligence, new home buyers purchased 562 single, semi-detached and townhomes in the GTA.

“People still want to purchase a detached, semi-detached or townhome in the GTA and over the last few years, we have seen a reduction in sales of ground-related housing. A typical January for the low-rise market would have seen more than 1,000 new homes sold across the GTA,” said BILD President and CEO Bryan Tuckey. “The level of ground-related housing sales resulted in 1,248 new homes to be sold in the GTA – almost 1,000 below the long-term average. This is a direct result of reduced affordability and choice in the low-rise sector and illustrates the effect of public policy on the market.”

The RealNet New Home Price Index indicated a 16 per cent increase in the low-rise sector over January 2012 ($639,588). High-rise condominiums remained the more affordable option in the GTA, with a two per cent increase in the price-per-square-foot bringing the unit price index to $435,722.”

Jan ’13

Low Rise

High Rise

Total

Region

2011

2012

2013

2011

2012

2013

2011

2012

2013

Durham

179

212

129

12

4

12

191

216

141

Halton

214

178

105

46

44

21

260

222

126

Peel

294

273

192

89

24

27

383

297

219

Toronto

44

30

10

837

551

508

881

581

518

York

403

481

126

115

121

118

518

602

244

GTA

1,134

1,174

562

1,099

744

686

2,233

1,918

1,248

Jan-Jan

1,134

1,174

562

1,099

744

686

2,233

1,918

1,248

Source: RealNet Canada Inc.

 

Casey Ragan

“Toronto’s Condo Authority”

Toronto Condos and Lofts

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Trademarks owned or controlled by The Canadian Real Estate Association. Used under license.

The information provided herein must only be used by consumers that have a bona fide interest in the purchase, sale or lease of real estate and may not be used for any commercial purpose or any other purpose.

Information is deemed reliable but is not guaranteed accurate by TREB.

Toronto Real Estate Board - IDX Last Updated: 8/24/2017 2:33:39 AM