The cost of a newly constructed detached home in the Toronto region dipped slightly in September to $ 1.6 million, down from about $ 1.8 million in August as more new low-rise housing came onto the market.
Builders typically launch new projects and more phases to existing developments in the fall, said Patricia Arsenault, executive vice-president of Altus Group, which researches new home sales for the Building and Land Development Association (BILD).
Read More: The Star looks at the present and the future of Toronto housing
Nevertheless, BILD says the inventory of new homes remains, “well below what is considered a healthy level.”
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Its September statistics show that sales of new construction low-rise homes — a category that includes detached houses, semi-detached and town homes — fell 73 per cent, compared to the same month last year.
Although they continue to dominate Toronto-area new home sales, condos — including high rises, low-rise apartments and stacked town homes — also saw a 37 per cent drop in the number of sales.
Eighty per cent of the new homes sold in the region this year were condos.
The average price of a condo was $ 661,188 last month, up slightly from the August average of $ 644,327 and 36 per cent higher than last September.
The average price per square foot was $ 789 and the average unit was 838 sq. ft. That compares to $ 750 per sq. ft. in August and a size of 859 sq. ft. on average.
Across the category, low-rise home prices saw a slight dip from about $ 1.2 million from about $ 1.3 million in August. The average was still 21 per cent higher than last September’s price of $ 992,391, said BILD.
This year to date, low-rise new home sales are down 53 per cent.
Townhouses, often considered a starter home, averaged about $ 1 million in the region last month.
Of the 352 pre-construction, low-rise homes sold across the region in September, only seven were in the City of Toronto. There were 134 low-rise home sales in Halton Region.
Condo construction continues to be centred in Toronto where 868 of the region’s 1,246 pre-construction sales occurred in September.