The Building Industry and Land Development Association (BILD) released its new home sales figures for June 2015, announcing that demand is strongly outpacing supply across the Greater Toronto Area (GTA).
The supply of new low-rise homes hit a record low last month, with inventory dropping to 5,155 across the GTA. There were 2,381 sales for new low-rise homes, which is more than what was brought to market during the month. High-rise sales hit 2,833, which is even greater than last year, bringing the total number of sales for June to 5,214.
"Constrained supply of low-rise housing is significantly affecting choice for new-home buyers in the GTA," says BILD President and CEO, Bryan Tuckey. "Limited supply of developable land with essential infrastructure, like roads and sewers, is driving up prices of new homes coming to market."
Huge line-up outside Aurora Trails last June
Due to the low supply and limited choices, the average price for a new low-rise home in the GTA was driven to a record high of $785,800, according to RealNet Canada, BILD’s official source for new home market intelligence. The average price for a new high-rise unit remained relatively unchanged at $441,134.
"As prices continue to grow, many GTA residents have been priced out of the low-rise market," says Tuckey. "We need to ensure a healthy supply of low-rise homes in the GTA to accommodate demand for our growing population."
June and July are traditionally slow periods for new home openings and releases, but will there be enough inventory launching in the fall season to bring balance back to the GTA’s new home market?