The Building Industry and Land Development Association (BILD) released its new home sales figures for October 2017, announcing a record high month of new condo sales in the Greater Toronto Area (GTA).
There were 5,377 new home sales in October, 91% of which were condo units, making it the highest October on record and a whopping 81% above the 10-year average. That means there were only 493 low-rise single-family homes sold, which is 64% below the 10-year average, according to BILD’s trusted source for new home intelligence, Altus Group.
From the beginning of the year to the end of October, there have been 39,476 new home sales in the GTA, and 82% of these are condo sales!
“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.”
The average price of a new low-rise home in October was $1,217,428, up slightly from September and 29.8% higher than October 2016. The average price of a new detached home was $1,548,888 and a new townhome averaged $995,571.
The average price of a new condo increased to $677,456, which is more than $16,000 higher than September 2017. The average price per square foot was $791 and the average unit size was 857 square feet.
“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,” says Patricia Arsenault, Altus Group’s Executive Vice President of Research Consulting Services.
New home inventory increased again to 12,500 units, but BILD says that is still an unhealthy level. At the end of October, there were 9,308 condo units available in the GTA and 3,192 single-family homes.
With the new mortgage regulations starting in 2018, it will be interesting to see if condo sales spike in November and December.