A recent TD survey showed prospective homebuyers in Toronto are suffering from FOMO, or a fear of missing out, as prices in the area continue to shoot upwards.
New data from Altus Group isn’t likely to ease concerns.
Last month, the average price of a brand new detached home in the GTA pierced the million-dollar mark for the first time, according to the real estate consultancy firm, soaring 21 per cent over the past year to $1,045,659.
Bryan Tuckey, president and CEO of the Building Industry and Land Development Association, which works with Altus in releasing the data, notes how limited housing stock is affecting prices.
“The demand for detached homes is far outpacing supply as the GTA’s population continues to grow,” says Tuckey in a statement. “Our region has record-low levels of new detached homes available for sale, which drives up prices and reduces housing choice for consumers,” he added.
BMO economist Robert Kavcic recently noted how last year, the number of single-detached homes contractors finished building sunk to the lowest level in over three decades. “Cue the bidding wars,” he wrote at the time.
Across the entire GTA, there were 1,634 new detached homes on the market at the end of March. Exactly a decade ago, a total of 11,149 houses were up for sale, said Altus Group.
Over that same 10-year period, new detached home prices have more than doubled.
In fact, roll the calendar back to March 2006 and house hunters could purchase a brand new detached home in the GTA for an average of $439,294, or roughly what a new high-rise condo unit goes for now.
The average new high-rise apartment price hit $459,231 last month, up 2 per cent from a year ago, according to Altus Group.
There were 1,560 new high-rise home sales recorded in March, and prospective buyers had 18,280 new units to choose from in the GTA at the end of last month.
Looking at all new low-rise homes — townhouses and semi-detached and detached residences — the average price reached $849,312 last month, up 15 per cent from a year ago.
Transactions for these dwellings totalled 2,032 in March, marking a 16 per cent increase compared to a year ago.
“New low-rise homes are being purchased faster than they can be brought to market,” states Tuckey. “As long as demand for low-rise homes continues to outpace supply, we will continue to see rapid price growth.”