New home prices spike in May while sales slip following release of Ontario’s housing plan
New home prices spike in May while sales slip following release of Ontario’s housing plan.
The results have the BILD Association claiming the housing plan has had little effect on the market.
"For the new homes market, the Province's fair housing plan has had little real effect," says BILD President and CEO Bryan Tuckey. "Prices continue to increase and supply, especially for single-family low-rise homes, continues to be low. The price acceleration in the condo portion of the market is especially worrisome since it not only represents the lion's share of new housing in the GTA, it's also making it difficult for condos to remain the affordable option."
The average new condo price in the GTA increased 33% year-over-year to $604,683. For the first time, the average townhome asking price eclipsed the $1 million mark.
The average asking price for a new detached home, meanwhile, was $1,942,316.
"The combination of lower sales, some increase in inventory and slower price growth in May compared to April was the first hint we have had of some hesitation among potential buyers of single-family homes," says Patricia Arsenault, Altus Group's Executive Vice President of Research Consulting Services. "But in the condominium apartment sector, it was still full steam ahead in May.
“Sales were steady and prices posted strong increases, meaning the increase in available inventory in May was not due to wavering demand but rather the burst in new condo project openings. Over 4,900 new units were brought to the market, almost twice as many as in the previous month, and many were in projects that launched near month end."
The price increases are just one side of the story, however.
Sales were down across the board.
There have been a total of $3,902 sales of new GTA homes in 2017 – that’s down from 6,052 during the same period a year prior.
The results have the BILD Association claiming the housing plan has had little effect on the market.
"For the new homes market, the Province's fair housing plan has had little real effect," says BILD President and CEO Bryan Tuckey. "Prices continue to increase and supply, especially for single-family low-rise homes, continues to be low. The price acceleration in the condo portion of the market is especially worrisome since it not only represents the lion's share of new housing in the GTA, it's also making it difficult for condos to remain the affordable option."
The average new condo price in the GTA increased 33% year-over-year to $604,683. For the first time, the average townhome asking price eclipsed the $1 million mark.
The average asking price for a new detached home, meanwhile, was $1,942,316.
"The combination of lower sales, some increase in inventory and slower price growth in May compared to April was the first hint we have had of some hesitation among potential buyers of single-family homes," says Patricia Arsenault, Altus Group's Executive Vice President of Research Consulting Services. "But in the condominium apartment sector, it was still full steam ahead in May.
“Sales were steady and prices posted strong increases, meaning the increase in available inventory in May was not due to wavering demand but rather the burst in new condo project openings. Over 4,900 new units were brought to the market, almost twice as many as in the previous month, and many were in projects that launched near month end."
The price increases are just one side of the story, however.
Sales were down across the board.
There have been a total of $3,902 sales of new GTA homes in 2017 – that’s down from 6,052 during the same period a year prior.
