Overall real estate prices and purchases in the GTA may be slowing down but the condo market has continued its steep climb.
91% of all home purchases last month were newly constructed condos, a total of approximately 4,890 properties. This is an 18% rise from last year’s numbers for newly built homes.
Since last year the number of low-rise home sales has decreased by 70% while overall condo sales have increased by 70% and prices risen 40%.
According to the Building and Land Development Association (BILD) this change in the market landscape is due to a decrease in low-rise buying opportunities and consistently high prices. Traditional detached and semi-detached homes are simply no longer an option for the average home buyer in Toronto, forcing many to turn to the condo market in order to stay within their budget.
By many accounts this housing market situation is unhealthy and in need of action to be taken. According to BILD, lengthy approval times for construction projects is significantly delaying new houses from entering the market on time to meet the high demand. Delays in the completion of housing developments will only further limit purchasing opportunities and force buyers into the high-rise condo market.
Photo Courtesy of JasonParis