New home sales hit record low at end of Q3

GREATER TORONTO, Oct. 22, 2013 /CNW/ - New home sales in the GTA saw a modest increase in September, but year-to-date figures are still the lowest in 10 years, the Building Industry and Land Development Association announced today.

According to RealNet Canada Inc., BILD's official source for new home market intelligence, total new home sales in September were up 4 per cent over September 2012 but after three Quarters, the 19,327 sales are down 44 per cent below the 10-year average.

The decline is attributed to the significant reduction in land supply for ground-related housing, resulting in near record low inventories and near record high pricing. At the end of the third Quarter, sales of new single, semi and towntomes sit at 63 per cent below the 10-year average.

"Constrained land supply has caused land prices to increase dramatically over the past decade, particularly in the low and medium density sectors where it has grown as much as 237 per cent," said BILD President and CEO Bryan Tuckey. "Near record high pricing has pushed the affordability of ground-related housing beyond the reach of many new home buyers in the GTA. This has resulted in a considerable reduction in sales, and the economic effects will likely be felt within a few years."

The RealNet New Home Price Index showed a 6 per cent increase in the low-rise sector over September 2012, bringing the price to $658,869. The price per square foot in the high-rise sector grew modestly but unit pricing declined by 1 per cent to $432,853 as unit size decreased by 2 per cent.

A statistical video analysis of September new home sales is available for viewing. For additional information, contact Amy Lazar or Andrei Zaretski.

Sept '13 Low Rise High Rise Total
Region 2011 2012 2013 2011 2012 2013 2011 2012 2013
Durham 246 151 227 3 12 0 249 163 227
Halton 185 64 258 53 13 67 238 77 325
Peel 246 447 319 155 78 72 401 525 391
Toronto 43 13 23 1,924 739 808 1,967 752 831
York 497 384 325 616 356 257 1,113 740 582
GTA 1,217 1,059 1,152 2,751 1,198 1,204 3,968 2,257 2,356
Jan-Sept 13,560 11,604 8,878 20,726 14,399 10,449 34,286 26,003 19,327

Source: RealNet Canada Inc.

With more than 1,400 members, BILD, formed through the merger of the Greater Toronto Home Builders' Association and Urban Development Institute/Ontario, is the voice of the land development, home building and professional renovation industry in the Greater Toronto Area.  BILD is proudly affiliated with the Ontario and Canadian Home Builders' Associations. 

SOURCE: Building Industry and Land Development Association

For further information:

Amy Lazar 
Manager, Communications
416-391-3452 or 416-543-3903
alazar@bildgta.ca 

Andrei Zaretski
Manager, Marketing & Media Relations
416-391-3450 or 416-843-4898
azaretski@bildgta.ca


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