According to the most recent statistics from the Building Industry and Land Development Association (BILD), condo apartments and stacked townhouses accounted for 91 per cent of homes sold last month. New condo unit sales increased 89 per cent last month from a year earlier.
Atlus Group, a firm that track new home statistics stated that sales of new condo units soared largely due to a number of new projects that hit the market in May and June.
Patricia Aresenault from Atlus Group stated that condo units attracted many consumers as they have more affordable entry-point prices. Many investors have also noted the increasing prices of condo units.
The Building Industry and Land Development Association CEO Bryan Tuckey stated in a press release that with the prices of condo units rising, this part of the market is becoming out of reach for numerous buyers.
The price of a new condo unit jumped to $627,000 last month in comparison to the previous month. This figure represents a $22,000 increase from May 2017. The price of a new condo unit increased 34 per cent last month in comparison to June 2016.
According to statistics, the price of a newly constructed single-family home including detached, semi-detached and traditional townhouses has jumped 40 per cent in the last year to $1.25 million from $887,543. The average price of a new detached home was $1.72 million in June 2017. This figure represents a 9 per cent increase from May 2017.
The Building Industry and Land Development Association revealed that there were only 11,000 new homes on the market last month. A year ago, there were approximately 18,000 new homes on the market. Ten years ago, approximately half of the 30,000 new properties available were single-family homes.
BILD CEO, Bryan Tuckey mentioned that the supply of newly constructed homes remains to be a problem. He has urged the government to provide assistance to builders to create more new homes. The lack of serviced and permit-ready land that is ready for development and outdated zoing bylaws continue to challenge builders and affect the supply of new homes.
Reference: Toronto Star