Low rise homes in the Greater Toronto Area exceeded an average of $900,000 for the first time in July as builders reported a 10-year inventory low.

The Building Industry and Land Development Association (BILD) says that detached and semi-detached house and townhomes in the GTA averaged $906, 508, an increase of 12 per cent from a year earlier according to BILD’s official data source, Altus Group.

Semi-detached homes were up by an average $196, 546 in a year to a new record high of $771,530. Townhomes increased by $122,491 to $758,434.

“New low-rise home prices have grown exponentially due to limited supply,” commented BILD president and CEO Bryan Tuckey. “Provincial intensification policies, delays in the approvals process and a lack of serviced developable land in the GTA has reduced the amount of new homes coming to the market.”

For high-rise homes there was also a new record high with an average year-over-year increase of 7 per cent to $475,764. The increase in high-rise homes has been exacerbated by demand due to out-of-reach low-rise.

“In previous years, many builders were focusing on offering smaller and more affordable units to help first-time buyers enter the market,” said Tuckey. “Recent months have seen the introduction of larger suites to meet the demands of the growing range of buyers who have been priced out of the low-rise market.”

Supply in builders’ inventory of new homes hit a 10-year low in July at 17,213 new homes available to buy, 41 per cent lower than a decade ago. Sales meanwhile, hit a decade-high of 28,208 new homes.

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