New home releases expected to slow despite inventory shortage

Traditionally, summer is a slow period for new home releases and openings across the Total Market Area (TMA), but since inventory levels have fallen so low and demand is so strong, there was a time when we thought that builders would continue to release more homes through the summer months.

According to Trimart Research Corporation, new releases and openings of new low-rise sites will still slow down through the summer months as builders prepare for their fall releases. This could cause prices to spike, making the fall market even more unrealistic for some buyers. The fact that homes are still selling in record high numbers on a monthly basis as prices also hit record highs mean that there is no sign of the market cooling.

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

Spring Valley Junction by Lindvest

Placing first on this week’s Trimart Hot Spots list is Spring Valley Junction, a new home community in Brampton by Lindvest that saw 34 sales last month. The community features 38’ and 41’ detached homes ranging from 1,953 to 3,467 square feet, with prices starting at $669,000.

Alton Village West by Sundial Homes

Following closely in second with 31 sales last month is Alton Village West, a new new home community in Burlington by Sundial Homes. The community features 31’ and 36’ detached homes ranging from 1,743 to 3,295 square feet with prices starting at $849,990. We won’t be surprised if new home sales in Burlington spike this year because MoneySense Magazine recently ranked it as the second best place to live in all of Canada.      

Mayfield Village by Aspen Ridge Homes

Coming in third with 21 sales last month is Mayfield Village in Brampton by Aspen Ridge Homes. With a successful month of sales, the 20’ and 25’ townhomes are currently sold out, as are the 32’ detached homes. There is a selection of 38’ detached homes, ranging from 2,164 to 2,564 square feet, available from $746,990. We estimate that Brampton has seen nearly 3,000 new home sales by this time of the year, making it the most popular city in the TMA for new low-rise sales.   

Arbor Peaks by Great Gulf

The fourth spot is taken by Arbor Peaks, a Great Gulf community in Milton that saw 12 sales last month. The community features 21’ townhomes, semis, and 36’ detached homes, ranging from 1,625 to 2,620 square feet, with prices starting from $589,990. So far this year, Milton has the second most new low-rise sales behind Brampton, with only about 700 sales.

Widdicombe & Eglinton by Fernbrook Homes

The final position on this week's Trimart Hot Spots list is taken by Widdicombe & Eglinton, a new townhome community in Toronto by Fernbrook Homes. Widdicombe & Eglinton features townhomes ranging from 2,248 to 2,625 square feet and prices are starting from $829,990.

All information courtesy Trimart Research Corporation.