The two markets (houses and condos) within the Greater Toronto Area housing market …….
RealNet Canada Inc. and the Building Industry and Land Development Association’s research show that in February 2015.
1. The average price of a new house in the Greater Toronto Area was $733,578 and this is a 12% increase over the previous year.
2. The average price of a new condo, on the other hand, increased less than 1 per cent during the same time period, going up to $442,672.
The limited supply of land in the Toronto area is increasing the value of new single-family home development. Currently, there are no line-up of investors or their representatives to purchase in new condo projects; causing developers to keep condo prices low and to shrink the size of the condo units.
According to the Toronto Real Estate Association numbers for the first two weeks of March 2015, the same situation is happening in the resale market. Resale house prices went up 11% compared to last year, while condo prices remained almost the same.
This price situation between condo prices and house prices is to be expected given that in 2014 there were more than 15,000 new condo units built in Toronto, compared to about 1,200 single-family homes.