Figures released today by the Building Industry and Land Development Association (BILD) indicate that new low-rise home sales have dropped to less than half of the long term average for the month.
According to RealNet Canada, BILD’s source for data, there were a total of 2,266 new homes and condos purchased in the GTA in July with high-rise condos sales hitting 1,415 and low-rise sales numbering 851. High-rise sales were slightly higher than the long term average for July while low-rise sales were much lower.
However, BILD attributes the weak low-rise number to low supply, not a lack of buyers.
“The Province of Ontario’s recent emphasis on intensification has resulted in a shortage of land supply, bringing inventory levels in the low-rise sector to record-low levels,” BILD President Bryan Tuckey explained in the press release that accompanied the new data.
“You can’t sell what you don’t have,” he continued, “and while the high-rise sector is there to help satisfy demand, new home buyers in the GTA end up suffering from a lack of options when it comes to housing type.”
The RealNet New Home Price Index also shows a price gap of more than $175,000 between high-rise and low-rise. The average cost of a low-rise home in the GTA is up to $613,090.