Average prices for new detached homes in the Greater Toronto Area have hit an eye-catching new milestone, according to a new report.
Figures from the Building Industry and Land Development Association, reported in the Financial Post
, have revealed that the average available price for a new detached home in the area has now passed $1 million.
The report suggests that new home prices are soaring – climbing 21 per cent in the last year alone. In March, the average figure reached $1.049 million with the average detached home selling for $861,848 in the same month one year ago. Indeed if you turn the clock back 10 years, average prices stood at just $439,294.
Speaking in a statement, Bryan Tuckey, the chief executive of the Building Industry and Land Development Association, outlined that demand is now rapidly outpacing supply in the area.
“Our region has record-low levels of new detached homes available for sale, which drives up prices and reduces housing choice for consumers,” he said.
House prices continue to rise throughout the area – indeed if you wanted to buy a detached home in the city of Toronto itself, the average cost is close to $1.2 million.
According to Tuckey, prices are likely to continue to rise as demand outstrips supply as he pointed the finger at a lack of serviced developable land and government intensification policies.