The Building Industry and Land Development Association (BILD) released its October 2014 new home market report, announcing that the average price for a new low-rise home in the Greater Toronto Area (GTA) hit a record high.
According to RealNet Canada Inc., BILD’s trusted source for market intelligence, there were 1,886 low-rise sales in the GTA in October 2014, which is 27% higher than the same period last year, and 19% above the 10-year average. The record high average price was $694,629, beating out last month’s record of $689,611.
High-rise sales were down 8% with just 2,158 sales last October, but are still on track with the 10-year average. The average price went up 5% to $455,535. BILD attributes the rising price and decline in sales to a number of larger suites hitting the market to accommodate family living.
“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Tuckey points out that the rise in prices for both low-rise and high-rise homes is caused by constrained land supply, outdated planning approval processes, and the constantly increasing government fees and charges across municipalities in the GTA.
New home highlights
According to Trimart Research Corporation, there were around 20 new low-rise openings and releases in the GTA in October. Combined with many condo openings, October was a hot month. Here are a few projects that opened in October to great success:
Lotus Pointe - via Greenpark
On the first weekend of October, Fieldgate, Greenpark, Rosehaven, and Starlane hosted the grand opening of Lotus Pointe in Caledon. Together, the four builders are bringing a huge selection of townhomes, semis, and singles to the south Caledon area. Prices are starting in the mid $400,000s and there are only a few homes remaining in Phase 1.
Crowd at The Preserve sales centre
On the same weekend, Remington Homes released a new collection of townhomes and detached homes at their highly successful Oakville community, The Preserve. It seems like Remington can’t release a collection of homes at The Preserve without selling out almost instantly. Soon after The Preserve release, Remington held the grand opening of MeadowGreen in Brampton. MeadowGreen features townhomes, semis, and detached homes on 38’ and 46’ lots.
Marc A. Muzzo, President, Pemberton Group speaking at the unveiling of the Urban Townhome Collection
Around the same time as Remington’s MeadowGreen launch, Pemberton Group unveiled the Urban Townhome Collection at U Condos in Toronto. The model home, which features decor and art by Douglas Coupland, is now open, and we highly recommend paying it a visit.
The Amethyst at Casablanca - via Landmart Homes
One more opening that we want to highlight is Landmart Homes’ grand opening of Casablanca in Brampton. This highly anticipated community was met with hoards of homebuyers interested in the 40’, 50’, and 70’ lots.
As the year is coming to a close, we are interested to see how the low-rise and high-rise market fare through the winter months. Stay tuned for more market updates!