The Greater Toronto and Hamilton Region New Homes Real Estate Report - May 2017
We saw some interesting "affordabalization" happening in the resale market in May. With all this talk of a real estate "cool down" happening, how has the new home market been impacted? Well if you take a look at this recent video of a new home community in Richmond Hill from Fieldgate Homes, it indicates a fairly contradictory signal then what we've seen in our recent resale market report titled "The Market is Affordabilizing". With double-digit price and sales drops seen in the Richmond Hill resale market in May followed by this type of sell-out new home event, it's hard to imagine we're talking about the same real estate market. Well we are, but it's definitely not the same. The new homes and resale market are related but also very different. The process is different, the product is new and the completion dates are much further down the road. This is a positive sign for long-term confidence in the marketplace today.
Now, let's dig into some new home stats to see how things looked in May.
Sales & Average Price Index by Home Type - May 2017
GTA New Home Sales - Last 12 Months
GTA New Homes Remaining Inventory - Last 12 Months
Last 12 Months Average Price Index (Excluding Extremes)
Off the bat, we're seeing some similar trends when it comes to low-rise vs. high-rise product. With a good amount of condos and houses both hitting the market in May, we're seeing the low-rise product moving a bit slower with sales down 62% from last month even though remaining low-rise inventory increased by 34%. Prices remained pretty frozen from the previous month as well. Considering the surge in prices earlier in the year, I think builders like sellers in the resale market need to ensure they're pricing their product competitively at market value if they want to dot some lots. Condos on the other hand increased in sales by 3% and 6% in price from last month, showing continued signs of high demand of more affordable housing in 2017. On a longer term scale, remaining supply for both low-rise and high-rise is 28% and 45% (respectively) lower from May of last year and prices are up 40% and 33%. Pretty hot for a supposively cool market.
Here's the top 3 Low-Rise & High-Rise communities for May in terms of sales: New Condos
- Bloor Promenade by Tridel
- Lighthouse East Tower Condominium Residences by Daniels
- M2 - M City Condominiums by Urban Capital Property Group and Rogers Real Estate Development Limited
New Low-rise Homes
- Woodbridge Park by Sierra Building Group
- Pathways Caledon East by Countrywide Homes
- Caledon East by Brookfield Residential
Data Compiled by New Street from Altus Group, TREB (Toronto Real Estate Board), RAHB (Realtors Association of Hamilton-Burlington). In association with Right at Home Realty Inc., Brokerage, 5111 New Street, Burlington, ON L7L 1V2 & Re/Max Performance Realty Inc Real Estate Brokerage, 1140 Burnhamthorpe Road West #141, Mississauga, Ontario L5C 2S9. The information here is deemed reliable but not guaranteed by any parties involved including New Street, Altus Group, TREB or RAHB.