Builders are releasing new homes gradually to manage low inventories

Trimart Research Corporation’s latest report stresses that the lack of inventory in the new low-rise market across the Total Market Area (TMA) is affecting home prices.

Builders are running low on supply so they are limiting the number of lots they release at a time in order to slowly feed the strong demand. In previous recent reports, Trimart stated that there were more than 30 new openings and releases planned for the fall. The most recent report says that there are more than 20. It’s possible that some builders have decided to hold off until early 2017 to release their new homes.

What does this mean for home prices? If demand isn’t met, prices will continue to go up. If the builders decide to release all of the lots all at once, the inventory would run dry, then there’d be a really big problem.

Sales should still be stronger during fall season compared to summer, but perhaps there won’t be as many sales as we expected.

Listed below are a few notable low-rise sites of the last month:

Dellwood Park by Sierra Building Group

Placing first on this week’s Trimart Hot Spots list is Dellwood Park, a new home community in Mississauga by Sierra Building Group that saw 50 sales last month. Dellwood Park features a collection of urban townhomes ranging from 726 to 1,086 square feet, with prices starting at $386,900.

Arbor Peaks by Great Gulf

Coming in second with 34 sales last month is Arbor Peaks in Milton by Great Gulf Homes. There is a selection of semis available, ranging from 1,615 to 2,185 square feet, with prices starting at $637,990. There are also 21’ townhomes and 36’ detached homes coming soon!

The Woodlands by Cassavia Homes

Following closely behind in third with 33 sales last month is The Woodlands, a new home community in Angus by Cassavia Estate Homes. The community features luxury semitowns (attached at the garage), ranging from 1,484 to 1,822 square feet. Prices are starting from $333,400.

Cornell by Mattamy Homes

The fourth spot is taken by The Condominiums of Cornell, a new community in Markham by Mattamy Homes. There were 12 sales last month. The units range from 526 to 1,201 square feet and if you want more information, you must contact the sales centre at 905-888-8282.

Westminster Highlands by Reid's Heritage Homes

The final position on this week’s Trimart Hot Spots list is occupied by Westminster Highlands, a new home community in Fergus by Reid’s Heritage Homes. With nine sales last month, the 38’ and 42’ detached homes are temporarily sold out. There is still a wide selection of new homes available, including two-storey townhomes, bungalow townhomes, and 50’ detached homes. The homes range from 1,223 to 3,056 square feet and prices start at $291,900.

All information courtesy Trimart Research Corporation.