Low-rise home prices climb

New home sales in Toronto remained low in August, but prices in the low-rise sector rose to a record high, says the Building Industry and Land Development Association.

It adds the 633 new high-rise homes sold in the area added up to the lowest August in a decade, as well as 46% below the long-term average.

Read: Home sales up last month

The low-rise market showed strength when compared to 2012 data, but the 777 sales of detached, semi-detached and townhomes still totaled the third lowest in 10 years.

However, the price index in the low-rise sector reached a high of $658,938.

“Constrained land supply has severely diminished inventory in the low-rise sector, bringing prices to a considerable increase,” said BILD president Bryan Tuckey. “Another factor is the rising government fees and charges that, on average, add up to one-fifth of the cost of a new home.”

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New home pricing also affects prices of existing homes, he says, since “affordability continues to be a challenge for everyone looking to buy a ground-related homes” in Toronto.

The price gap between the high-rise and low-rise sectors has grown to the highest on record. It stands at $222,149, with prices of high-rise homes remaining steady.

Read: Global housing markets heat up

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.