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For new condo apartments, the report found that government charges can add up to as much as C$124,582 per unit. That's about 50% higher than the average unit in the U.S. and about 30% higher than the average unit in Canada (see above chart for the list of cities). While all of us in the industry can appreciate this, I don't think most homeowners and tenants understand this. Hopefully they're reading this post.
Chart: Bloomberg
February data (2018) for the new home market in the Greater Toronto Area was released this past week by BILD and Altus. I seem to have gotten into the habit of writing about this every month.
The benchmark price for new low-rise single-family housing was down slightly from January to $1,219,874, but still up 12.8% from a year prior.
The benchmark price for new high-rise housing was up a whopping 39.5% year-over-year to $729,735. But part of this is being driven by an equally dramatic increase in average unit sizes.
Here is the relevant graph:
For new condo apartments, the report found that government charges can add up to as much as C$124,582 per unit. That's about 50% higher than the average unit in the U.S. and about 30% higher than the average unit in Canada (see above chart for the list of cities). While all of us in the industry can appreciate this, I don't think most homeowners and tenants understand this. Hopefully they're reading this post.
Chart: Bloomberg
February data (2018) for the new home market in the Greater Toronto Area was released this past week by BILD and Altus. I seem to have gotten into the habit of writing about this every month.
The benchmark price for new low-rise single-family housing was down slightly from January to $1,219,874, but still up 12.8% from a year prior.
The benchmark price for new high-rise housing was up a whopping 39.5% year-over-year to $729,735. But part of this is being driven by an equally dramatic increase in average unit sizes.
Here is the relevant graph:
This morning BILD and Altus Group released their January 2019 new home sales figures for the Greater Toronto Area.
Here are the highlights:
1,362 new homes sold in January 2019 across the GTA. This is up 14% compared to last January.
Of these, 942 (~69%) were condominiums (includes low, mid, and high-rise, as well as townhouses). And 420 (~31%) were single-family homes (includes detached, semi-detached, and freehold townhouses).
Condominium sales volume is sitting only about 5% below the 10-year average and the benchmark price increased this month to $803,638, which represents a 12.5% year-over-year increase.
On the other hand, single-family home sales are down about 53% from the 10-year average and the benchmark price decreased by about 8.1% compared to last year. It is sitting at $1,130,046.
While there continues to be a bifurcation in the new home market, we are seeing improvements across the board and the data is consistent with Altus' prediction that 2019 will see an increase in overall sales.
It is also important to consider how geography might factor into the above numbers. Here are the January sales numbers for the last three years broken down by region within the GTA:
Just under 80% of the new condominiums sold last month took place in Toronto, whereas only about 1.2% of the single-family homes sold last month took place in the city. You can count them on one hand. There were only 5.
So rather than just look at this in terms of housing type, I think the other way to interpret the data is that it could suggest strong and continued demand for centrally located and transit-oriented communities.
And that just so happens to translate into a condominium.
Photo by Eugene Aikimov on Unsplash
The story continues to be about tight supply, historically low developer inventories, and a lack of affordable low-rise product.
As I have argued many times before on this blog, I believe these factors — and in particular the last one — are, at least partly, driving this recent pop in high-rise pricing. People are priced out and now searching for substitutes.
So my prediction continues to be that we will see a convergence (i.e. diminishing spread) between new low-rise and high-rise pricing.
That will also bring about design and product changes on the high-rise side.
This morning BILD and Altus Group released their January 2019 new home sales figures for the Greater Toronto Area.
Here are the highlights:
1,362 new homes sold in January 2019 across the GTA. This is up 14% compared to last January.
Of these, 942 (~69%) were condominiums (includes low, mid, and high-rise, as well as townhouses). And 420 (~31%) were single-family homes (includes detached, semi-detached, and freehold townhouses).
Condominium sales volume is sitting only about 5% below the 10-year average and the benchmark price increased this month to $803,638, which represents a 12.5% year-over-year increase.
On the other hand, single-family home sales are down about 53% from the 10-year average and the benchmark price decreased by about 8.1% compared to last year. It is sitting at $1,130,046.
While there continues to be a bifurcation in the new home market, we are seeing improvements across the board and the data is consistent with Altus' prediction that 2019 will see an increase in overall sales.
It is also important to consider how geography might factor into the above numbers. Here are the January sales numbers for the last three years broken down by region within the GTA:
Just under 80% of the new condominiums sold last month took place in Toronto, whereas only about 1.2% of the single-family homes sold last month took place in the city. You can count them on one hand. There were only 5.
So rather than just look at this in terms of housing type, I think the other way to interpret the data is that it could suggest strong and continued demand for centrally located and transit-oriented communities.
And that just so happens to translate into a condominium.
Photo by Eugene Aikimov on Unsplash
The story continues to be about tight supply, historically low developer inventories, and a lack of affordable low-rise product.
As I have argued many times before on this blog, I believe these factors — and in particular the last one — are, at least partly, driving this recent pop in high-rise pricing. People are priced out and now searching for substitutes.
So my prediction continues to be that we will see a convergence (i.e. diminishing spread) between new low-rise and high-rise pricing.
That will also bring about design and product changes on the high-rise side.
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