New Home Market Performed Strongly Through First Half of 2014
By Lucas on Jul 22, 2014
Halfway through 2014, the new home industry in the Greater Toronto Area (GTA) continues to show strength, according to the Building Industry and Land Development Association (BILD) and their trusted market intelligence source, RealNet Canada Inc.
In June 2014, the GTA saw 4,608 new home sales, ranking as the third highest June in the last decade. BILD credits most of this year’s success to builders and developers concentrating on selling the leftover inventory from the slow 2013.
The low-rise sector saw 2,020 sales in June, and York was the top performing region with 881 sales. In the first six months of 2014, there have been 9,565 low-rise sales.
The high-rise sector saw 2,588 sales in June, 2,026 of which were in Toronto. There were 10,989 high-rise sales in the first half of the year.
Phase 1 of AXIOM Condos by Greenpark and Fieldgate is sold out.
"We are seeing above-average sales in the high-rise sector, particularly in the City of Toronto, which illustrates GTA residents' continued shift toward a condo lifestyle," said BILD president and CEO Bryan Tuckey. "New project launches have also contributed to the increase in low-rise sales, although rising prices for ground-related homes remain a challenge for new-home buyers."
For June, the RealNet New Home Price Index indicates that the average price of a low-rise home increased 7 percent to an all-time high of $680,529. The average price of high-rise units also increased, but only by 2 percent, reaching an average of $436,876.
With a number of new releases planned for late August and September, we are confident that the GTA’s new home market will stay strong through the remaining months of the year.
