Toronto Builder - Winter 2017 - 23
GTA MARKET UPDATE - JAN. TO AUG. 2017
Based on the pace of sales in the past 12 months,
the total inventory would represent just over
two months of supply.
The inventory of new single-family homes
continued to move up from its bottom in April.
However, single-family new home inventory
remains virtually depleted.
The inventory of new condominium apartments also nudged up in August, but is less than
half the level of a year ago and remains low compared to historical levels. Most of the inventory is
in pre-construction projects. Over the past year,
the City of Toronto and York Region have experienced the most decline in inventory of condominium apartment product.
Low inventory levels have been a key factor
impacting price trends in the new home market.
As inventories have bottomed and are moving
up, albeit modestly, year-over-year house price
increases have in turn stopped accelerating.
Following record highs set in July for the overall
benchmark price of new single-family and condominium apartment homes, the benchmark
price of both segments of the market slipped
modestly in August.
The benchmark price of available new condominium apartments dipped slightly in August
to $644,327. However, the August price was still
ahead of August 2016 by 34%, reflecting the sharp
drop in inventory levels over the past year.
The increase in average new condominium
apartment prices compared to a year ago has been
a combination of two key factors - the benchmark
price per sq. ft. of remaining inventory is up 26%
from a year earlier, and continues to be a main driver
behind overall price increases. The benchmark unit
size is also up from a year ago, by 6% - i.e. larger unit
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