New construction home sales — houses and condos — declined by 48 per cent in January in the Toronto region, compared to the frenzied real estate market in the same month last year.

It's a 31 per cent drop from the 10-year average and reflects a supply shortage that has also helped push up prices in the same period, says Toronto's building industry association.

The single-family benchmark home price rose 19.6 per cent year-over-year last month to $1.23 million — up from about $1 million last January.

Condo prices climbed about 41 per cent year-over-year to a benchmark of $714,430, said the Building and Land Development Association (BILD).

Prices remained flat, however, from December, according to the research compiled by Altus Group.

Of the 1,251 new construction homes sold last month in the Toronto region, only 365 were single-family units. That marks a 10-year low and a 53 per cent decline from last year.

Condo sales were down 47 per cent year-over-year, 5 per cent below the 10-year average.

The supply of new homes increased by 350 units in January from December to 11,750 — a three- to four-month supply based on the pace of sales in the last year.

"A healthy new home market should have nine to 12 months' worth of inventory," said BILD in a Thursday press release.

"The GTA is expected to grow to 9.7 million people by 2041. How are we going to house them," said the association's CEO Dave Wilkes in the release.

Meanwhile, despite the high cost of new-build housing in the region, there are some good values available to consumers, says an analysis of searches on BuzzBuzzHome, an online hub for new home developments.

The website had more than 1 million hits last month, up 58 per cent from January 2017, with first-time buyers the biggest segment searching online for a home, according to its “Residential Real Estate Round Up Report.”

The analysis looks at the size, location and price of low-rise and high-rise housing developments throughout the Toronto region.

The east end of the GTA will give buyers the most bang for their buck, but there are some good values to be had in the west, where condos in Brampton and Mississauga are under-valued compared to other kinds of homes in those communities, said Ben Myers of Bullpen Research and Consulting, the report's author.

The most popular floor plans that home buyers searched were three-bedroom townhouses and four-bedroom detached homes.

Downtown Toronto continues to be the hottest condo market, with units at 357 King attracting the most searches. Those buyers are looking for smaller, less expensive apartments. The most popular units tend to be studios and small one-bedrooms between 375 sq. ft. and 550 sq. ft., priced for less than $500,000.

Interest in condos is also spreading to secondary markets such as Hamilton and Waterloo, said Myers.

In Hamilton, the average condo was priced under $300,000. Projects in that city drew 44 per cent more page views in January compared to December, says the report.

Empty nesters looking to cash out of the city are looking at secondary condo markets such as Grimsby, Collingwood, Barrie, Guelph and Orillia, said Myers.

Loading... Loading... Loading... Loading... Loading... Loading...

He warned that the continued price growth in the condo market will push rents higher as investment buyers look for returns on their purchases.

Average asking price for new construction homes

$1.6 million

Detached house

$988,343

Townhouse

$903,054

Semi-detached house

$782,488

Condominium

Source: Research by Altus Group for the Building and Land Development Association

Correction – February 23, 2018: This article was edited from a previous version that said The GTA is expected to grow by 9.7 million people by 2041.