Toronto home prices continue to break records.
According to a recent report by the Building Industry and Land Development Association (BILD), the benchmark price for new single-family homes was $1,858,713, up 35.3% over the last 12 months. As for new condos, the benchmark price was up 13% to $1,177,739.
But that increase in price certainly hasn’t put a dent in demand. In February, there were 3,630 new home sales, which was 17% above the 10-year average, according to Altus Group, BILD’s official source for new market home intelligence.
The sale of condos was at a new monthly high in February. A total of 3,048 condos, stacked town houses, and lofts were sold that month. That rate was up by 78% compared to February 2021 and 67% above the 10-year average.
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Meanwhile, new single-family homes accounted for 582 units sold in February, which is only half of the 10-year average. This includes detached, linked, and semi-detached houses and townhouses, excluding stacked townhouses. That rate was 54% below the 10-year average.
“GTA benchmark new home prices set record highs in February in both the single-family and condominium apartment sectors,” said Edward Jegg, Manager of Research Consulting at Altus Analytics, Altus Group. “Low available inventory, particularly for single-family homes, continues to exert upward pressure on prices.”
Another record-breaker: low remaining inventory of single-family homes at just 546 units.
Dave Wilkes, BILD president and CEO, said that the increase in benchmark prices is the result of the region’s critically low supply of new homes. According to the report, a balanced market would have nine to 12 months of inventory; Toronto’s market only has three months.
“If this trend continues unchecked, we are all going to feel the effects as more and more families make the difficult choice to leave the GTA in search of housing and our region loses out on economic growth, jobs and tax revenues,” he said. “Now is the time for all parties to come together and act decisively to address our housing supply and affordability crisis.”