Demand spillover from GTA creating supply shortage in surrounding areas
By Lucas on Mar 29, 2017
We’re approaching the end of the first quarter of 2017 - new low-rise sales are gaining momentum, but are still low compared to last year, but not because of a lack of demand.
According to Trimart Research Corporation’s latest report, February sales were up compared to January, but year-over-year were down 38%. Overall, there are 4,284 new low-rise homes available across the Total Market Area (TMA).
The Building Industry and Land Development Association’s (BILD) recent announcement states that there are only 1,001 new low-rise homes available in the Greater Toronto Area (GTA). The GTA takes up a good chunk of the TMA. So, even in surrounding areas like Innisfil, Barrie, and Guelph, inventory is running low.
As we head into the typically busy season of spring, we should see more new low-rise units hitting the market, but will it be enough to satisfy the growing demand?
Listed below are a few notable low-rise sites of the last month:
Queen's Common by Mattamy Homes
Placing first on this week’s Trimart Hot Spots list is Queen’s Common, a new home community in Whitby by Mattamy Homes. With 88 sales last month, the current phase is sold out! The community featured village homes, townhomes, and 30’, 36’, and 43’ detached homes, ranging from 1,044 to 3,264 square feet. We’ve been predicting strong sales for Whitby and it looks like it’s starting to happen. Stay tuned for the next Queen’s Common release!
Clairity by Reid's Heritage Homes
Coming in second is Clairity, an urban townhome community in Guelph by Reid’s Heritage Homes. With 62 sales during the opening month, the project is now sold out! Clairity featured units ranging from 501 to 993 square feet with prices starting at $199,900. At this price point, it was an attractive option for first-time buyers and empty nesters!
Alton Village West by Sundial Homes
Third place is taken by Alton Village West, a new home community in Burlington by Sundial Homes. Last month, there were 38 sales at the community! Alton Village West features semis and 31’ detached homes, ranging from 1,743 to 2,819 square feet. Many buyers have been turning to semis as affordable alternatives to detached homes, but even the price of semis has been surging recently.
Kingmeadow by Minto
The fourth spot is taken by Kingmeadow, a successful new home community in Oshawa by Minto. Last month the community saw 21 sales. Minto is currently selling urban townhomes ranging from 647 to 1,404 square feet.
Pinehurst by Brookfield Homes
Following closely behind with 20 sales last month is Pinehurst, a new home community in Paris by Brookfield Homes. Brookfield is preparing for a new release of 20’ townhomes and 36’ and 43’ detached homes, so keep your eye on this one!
All information courtesy Trimart Research Corporation (except the BILD data).
