Last month doesn’t seem to be much of an outlier considering sales dropped 21 per cent from July 2012 and fell 40 per cent below the 10 year average. Beyond July, the year-to-date records also saw a significant decline with new homes sales down by 31 per cent from the 10 year average.
Both sales of new high-rise and low-rise homes came in low. There were 995 new high-rise home sales last month, a 39 per cent drop compared to July 2012. July’s high-rise sales were also 34 per cent below the 10 year average. The number of high-rise sales also scores as the second lowest July on record.
The low-rise market saw a similar trend. The total number of sales for July (783) was the second lowest on record. Sales slid 7 per cent from the same time last year and plummeted 45 per cent below the 10 year average.
As the GTA continues to build up, the available inventory in the region has changed dramatically. Consider this 180 degree turn: a decade ago, the GTA had three new low-rise options for every high-rise available. Now there are three high-rise options for every low-rise home.
The inventory gap has pushed the average price of a new low-rise home in the GTA to an all time high of $645,854, growing by 5.3 per cent from July 2012. High rise prices, however, have flatlined. In July, the average price for a new high-rise fell by 1.6 per cent to $430,930.
All in all, that means the ever-growing price gap between a house and condo is now at its widest. However, the record high difference of $215,000 is a more recent phenomenon. RealNet points out that the disparity was just $75,000 between 2004 to 2011.
For more details check out the RealNet charts below…