Read it and weep, would-be home buyers. Toronto has just passed another real estate milestone, as the average price for all newly built homes has exceeded $1 million.
In the past, this was only true of new detached homes, but now it's the whole lot of them.
According to the Building Industry and Land Development Association (BILD GTA), "the average price of new single-family low-rise homes, which includes detached, semi-detached, row and townhomes, increased to a new record of $1,028,395" in January.
That marks a 25 per cent increase for new low-rise housing in the Toronto area in just a year. For more context, BILD pegs the average price of a new detached home at $1,316,325. Rewind a decade and that price was $444,368.
Meanwhile, "the average price of new condominium apartments in stacked townhouses and mid and high-rise buildings in the GTA reached $507,511 in January, also setting a new record," according to BILD's data.
As it's done in the past, BILD chalks these price increases up to low inventory across the GTA. "Overall there were 13,053 new homes in builders’ inventories across the region in January compared to 31,461 a decade ago," reads the BILD report.
Not everyone supports the low supply theory, however. BMO Chief Economist Doug Porter recently made waves when he said the Toronto area housing market is in the midst of a bubble, where prices have become "dangerously detached" from sound economic principles.
BMO highlights unprecedented demand as the driving force behind the city's wildly rising real estate prices, rather than short supply. Either way, at present, the picture looks bleak for first-time buyers.
by Derek Flack via blogTO