The average price of a newly-built single-family detached home in the Greater Toronto Area has exceeded $1 million for the first time. Figures from the Building Industry and Land Development Association reveal that the milestone was reached as of the end of March with prices up from $861,848 a year earlier.
The 21 per cent year-over-year surge has been driven by strong demand in the GTA which has not been met by supply. This, BILD CEO Bryan Tuckey says, is due to government intensification policies and a lack of suitable land.
"The demand for detached homes is far outpacing supply as the GTA's population continues to grow," said Tuckey. "Our region has record-low levels of new detached homes available for sale, which drives up prices and reduces housing choice for consumers."
In March, 905 new detached homes sold and inventory was at just 1,634. The building industry is meeting provincial requirements for townhouses and condos but Tuckey says there is strong demand for detached homes.
"New low-rise homes are being purchased faster than they can be brought to market," Tuckey said. "As long as demand for low-rise homes continues to outpace supply, we will continue to see rapid price growth."
Prices for all low-rise homes, including townhouses, semi-detached and detached, also set a new record in March - $849,312. High-rise homes averaged $459,231.