Home sales are rising in the 905 regions

Earlier this week, I was invited to sit on a panel and give the industry perspective on what has been happening in the first three months of this year regarding new home sales and market trends.

The panel was organized by RealNet Canada Inc., BILD’s official source of new home market intelligence, which at the same time released sales figures for the first quarter. A total of 8,194 new homes were sold across the GTA between January and March this year.

But here’s what stood out to me: 46 per cent of the highrise sales came out of the 905. It’s true that we are seeing more activity outside the City of Toronto, which in the case of highrise sales is partly due to government policy encouraging intensification and development around planned transportation corridors.

Now, before we start imagining the City of Toronto’s skyline in municipalities like Vaughan, Markham or Oakville, I think it’s important to note that highrise projects in the 905 are typically half to one-third the size of what you’d see built in downtown Toronto. Still, the industry is answering the market demand for highrise choices in the 905.

To put offer a little more in perspective, 42 new housing projects were launched over the last three months and 35 more are expected in the next quarter. During the panel discussion I learned that the projects that launched this time last year were mainly lowrise, but this year, 44 per cent of them are highrise projects in the 905 municipalities.

However, the lowrise market led in unit sales so far this year and that leads me to believe that no matter what municipality you want to live in, there will always be affordable housing options for you.

If you’re just entering the real estate market, a condominium unit might be the most affordable way for you to do it. If you’re in the market but need more space, maybe it’s a townhouse or a single-family home that will catch your eye.

But here’s what everyone really wants to know: What does it cost?

Looking at pricing over the last three months, the average price of a new lowrise home in the GTA is $567,567, which has gone up from this time last year by 10 per cent, mainly because of the increase in production costs and government-imposed fees and charges.

The average price of a condominium unit in the GTA is $421,839, down 5 per cent from this time last year and this is mainly because the size of the units are shrinking.

After taking part in the panel discussion this week, my best advice is to research the new projects launching in the city or town where you want to live and see what works for you, your budget and your lifestyle.

PAUL GOLINI JR.

http://www.yourhome.ca/homes/newsfeatures/article/1163941--home-sales-are-rising-in-the-905-regions

Posted via email from Markham Real Estate Today with Asif Khan