New home sales slip in August

GREATER TORONTO, Sept. 24, 2012 /CNW/ - Sales of new homes and condominiums in the GTA have declined in August, however, new home buyers have purchased 24,301 new homes so far in 2012, the Building Industry and Land Development Association (BILD) reported today.

According to RealNet Canada Inc., BILD's official source of new home market intelligence, the 1,242 homes sold in August 2012 add up to the lowest monthly sales since 2009 and the lowest August on record. Year-to-date sales have remained on par with 2010 but below its record-breaking 2011 predecessor.

"The federal government has been working on reducing household debt levels and recently adjusted mortgage lending rules. August was the first full month with the new rules in place and it appears these regulations have affected consumer confidence, resulting in significantly reduced sales of new homes," explained BILD President and CEO Bryan Tuckey. "BILD will be carefully monitoring new home sales during the next three months to see if this decline becomes a trend."

"Confidence in the new homes market is crucial to a healthy economy in the GTA," added BILD Chair Paul Golini Jr. "This industry employs more than 193,000 people, making it one of the largest contributors to economic growth in Ontario."

Additional factors include lack of housing supply and choice for consumers as a result of the Province of Ontario's emphasis on intensification. The new homes industry has seen pricing for low-rise homes limit choice in housing options and affordability for many homebuyers.

The RealNet New Home Price Index currently sits at $609,369 and $436,460 for a low-rise and high-rise home, respectively.

A statistical backgrounder on new home sales in July 2012 can be found here. Contact Andrei Zaretski at azaretski@bildgta.ca or Amy Lazar at alazar@bildgta.ca for more information.

August '12 Low Rise High Rise Total
Region 2010 2011 2012 2010 2011 2012 2010 2011 2012
Durham 182 206 119 7 7 12 189 213 131
Halton 241 610 75 24 283 15 265 893 90
Peel 202 281 267 89 63 66 291 344 333
Toronto 18 47 22 751 1,027 469 769 1,074 491
York 356 385 114 108 587 83 464 972 197
GTA 999 1,529 597 979 1,967 645 1,978 3,496 1,242
Jan-Aug 11,212 12,357 10,710 12,347 18,055 13,591 23,559 30,412 24,301

Source: RealNet Canada Inc.

With more than 1,375 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.

PDF available at: http://stream1.newswire.ca/media/2012/09/24/20120924_C9062_DOC_EN_18350.pdf

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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