There was strong demand for new homes in the GTA last year, resulting in the third-highest annual sales in the past decade, according to the Building Industry and Land Development Association (BILD).
In 2015, 41,295 new homes were purchased in the GTA, according to BILD’s source for new home market intelligence, RealNet Canada Inc. That equals a two per cent increase from 2014, when there were 40,324 new homes purchased.
Total new home sales in 2015 were a 13 per cent increase over the 10-year average of 36,543. In the last 10 years, only 2011 and 2007 have recorded more sales of new homes (46,304 and 43,391, respectively).
In 2015, there were 21,658 new high-rise condominium units purchased, which is a two per cent drop from 2014’s 22,176 units. However, last year’s figure is still 11 per cent over the 10-year average of 19,457 units.
In low-rise homes, which includes detached, semi-detached and townhomes, there were 19,637 new homes purchased in 2015, which is an eight per cent increase over 2014, when there were 18,148 sales recorded. The 2015 figure is 15 per cent greater than the 10-year average of 17,085 new homes sold.
Meanwhile, new home prices in the GTA grew to their highest level in 2015. The average price per square foot of new high-rise homes reached a record high of $584 per square foot at the end of 2015, which is a five per cent increase from December 2014, which recorded a cost of $557 per square foot.
The average price of a new high-rise condo unit dropped to $453,083 in 2015, down from $454,476 the year before. However, that could be due to the average size of a new condo unit decreasing from 816 square feet in 2014 to 775 square feet in December 2015.
“The industry continues to find new and innovative ways to keep the price of new homes within reach for first-time buyers,” said Bryan Tuckey, BILD president and CEO, in a press release. “By maximizing living space and reducing the overall suite size, our members successfully kept the average price of a high-rise home stable over the last 12 months.”
Meanwhile, the average price of a new low-rise home increased a record 18 per cent year-over-year to $829,766 in December 2015, compared to $705,813. In single-detached homes, prices grew 18 per cent year-over-year to $991,156 in 2015, up from $840,719 in 2014.
The GTA saw home sales that aligned with the 10-year average during the month of December, with 658 sales of low-rise homes and 1,078 sales of high rise homes.