Price of average new ground-related house in GTA approaches $700k

Here’s a press release from BILD, the organization representing land developers, homebuilders and renovation contractors in the Greater Toronto Area.

TORONTO, November 20, 2014 – The price of a new low-rise home in the GTA reached a new record-high amidst strong sales this October, the Building Industry and Land Development Association (BILD) announced today.

According to RealNet Canada Inc., BILD’s official source for new-home market intelligence, low-rise pricing reached $694,629, eclipsing the previous record set just one month prior.

High-rise sales in October showed a moderate decrease of 8 per cent, but remain on par with the 10-year average. The average price of a high-rise home was up 5 per cent to $455,535 as new projects across the GTA introduce larger suite sizes to accommodate consumer preference.

RealNet sales figures for October showed that there were 1,886 new detached, semi-detached and townhomes sold across the GTA, which is up 27 per cent over October 2013 and 19 per cent above the 10-year average.

BILD attributes the strong low-rise sales to a number of new project launches combined with high demand for ground-related housing in the GTA.

“Building homes that people can afford to purchase is a significant challenge for our industry as it affects all current and future residents of the GTA,” said BILD president and CEO Bryan Tuckey. “With the gap between the two property types steadily widening, the dream of homeownership is drifting out of reach for many, especially for first-time buyers and new Canadians already challenged to save up for a down payment.”

Tuckey explained that escalating prices are a result of constrained land supply, an outdated planning approvals process and increasing government fees and charges across GTA municipalities.