Record October for new condo apartment sales as single-family inventory remains low

GREATER TORONTO, Nov. 23, 2017 /CNW/ - New construction home sales soared in the GTA in the month of October, 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 5,377 new homes sold in October, according to Altus Group, BILD's official source for new-home market intelligence. About 91 per cent of them (4,884 units) were multi-family homes, and only nine per cent (493) were low-rise single-family homes such as detached and semi-detached houses and townhomes. Condo sales for October were 81 per cent above the 10 year average of 2,697, and the highest October yet recorded, while low-rise sales were 64 per cent below the 10 year average of 1,388.

As of the end of October, 39,476 new homes have been sold in the GTA in 2017, 82 per cent of them condo apartments in high-rise and mid-rise buildings and stacked townhomes.

"October data shows that the new homebuyer is left with very little choice when it comes to purchasing a new home," says BILD President and CEO Bryan Tuckey. 

"Provincial intensification policy has our members building more high and mid-rise dwellings making housing choices a challenge. The cost of a single family home is out of reach for many consumers pushing them to buy a condo over a house. As a result we are seeing record breaking condo sales and higher prices this year for new low-rise homes."

While supply of new housing increased again in October and reached 12,500 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 October, there were 9,308 multi-family homes and 3,192 single-family homes available in the GTA.

"Demand for newly-built condominium apartments is being fueled by three key buyer groups ? small investors who have become the de facto providers of new rental housing supply in the GTA; end user buyers who might prefer a single-family home but are seeking out more affordable options; and the more traditional end users who value the lifestyle and amenities of well-located projects," said Patricia Arsenault, Altus Group's Executive Vice President of Research Consulting Services.

Prices of available new homes in October increased slightly for both single-family low-rise homes and multi-family homes. The average for available new single-family homes was $1,217,428 up from $1,204,829 in September, and 29.8 per cent above last October's average price of $937,689. The average price for available new detached homes was $1,548,888 and the average for available new townhomes was $995,571.

Meanwhile the average price of available new condo apartments in high-rise and mid-rise buildings and stacked townhomes was $677,456 in October, up from September's $661,188. The average price per square foot was $791 and the average unit size was 857 square feet.

October New-Home Sales by Municipality:

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.

SOURCE Building Industry and Land Development Association