October 19, 2010
RealNet released its new home stats– and some of them might be surprising for some of you out there!
There were a total of 6,503 new homes sold in the GTA between July 1 and September 30 (2,736 were low density and 3,767 were high density).
Low density home sales lagged. In fact, during the month of September, low density new home sales were the lowest in the past 11 years (excluding the during the 2008 recessionary period). This, however, is due to a lack of supply. Prices for low density housing increased during the third quarter by $6,738.
Sales of high density homes told a very different story, however.
Overall, the third quarter saw average sales numbers with comparison to the past 11 years. But monthly results for September were the third best September performance and the year to date sales of new high density homes were the second strongest year on record. High Density prices, however, dropped by about $14,608 to $410,730.
Wait, huh? So the market was hot, but prices dropped?
Let me explain. So the prices quoted above are taking an average of the final sales price of the condos sold during that quarter. The average price per square foot increased slightly, but the average unit size decreased dramatically.
One other interesting note was that inventory levels are actually quite low. Everyone’s been concerned about how many condos are suddenly hitting the market. After all, if they couldn’t find a buyer who wanted to call them home, prices would have to drop. But, as it turns out, inventories are at 24,795 units which is below the average 25,000 to 30,000.
So people are buying smaller units and prices are remaining relatively unchanged. Inventory levels are actually at fairly low-average levels. A lack of supply is holding back suburban sprawl and causing prices to edge up in the low-density category.
Sounds like everything’s going along juuuusssssttttt fine to me!