In May 2014, the price gap between a new low-rise and high-rise home in the GTA was $237,301. But with inventory levels low for ground-related housing, that number has climbed up by an extra $100,000 in just one year.
According to figures released Thursday by RealNet Canada, the price gulf between new low-rise and high-rise homes reached the record high of $343,492 in May. New ground-level homes in the region sold for an average of $783,995 last month, a new high, and a 16 per cent surge over the same time last year.
New high-rise units could not keep pace: the average sale price for new condo edged up 0.6 per cent annually to $440,463.
“The rapidly widening price gap is an indication that demand is far outpacing supply in this part of the market,” said BILD president and CEO Bryan Tuckey. “As the price of ground-related housing continues to grow at a record pace, it’s becoming increasingly difficult for GTA residents to afford a low-rise home.”
According to the latest BuzzBuzzHome data, the median price of a new condo currently on the market in the City of Toronto is $391,900, while houses and townhomes have a median of $632,445. Still there are stark regional differences, especially for the low-rise market. For example, in Vaughan, the median price of new low-rise listings is $764,990.
The two property types also recorded very different sales activity according to RealNet data. The GTA saw 2,442 new low-rise home sales in May, a 28 per cent increase from the same month last year. New low-rise home sales in Peel Region doubled, year-over-year, seeing 866 transactions last month, up from 422 last year.
Meanwhile, sales of new low-rise properties dropped to 1,793, a 12 per cent fall compared to May 2014.
The City of Toronto accounted for about 59 per cent of all new high-rise sales in May. But the amount of new condo sales has declined compared to the last few years. In May 2013, Toronto recorded 1,153 sales. In May 2014, it counted 1,594. That means last month’s 1,057 sales fell 8 per cent below 2013 levels and 34 per cent below last year’s levels.
However, new condo sales in May were still up 8 per cent over the 10-year average.