GTA new home sales a tale of two markets

GREATER TORONTO, July 21 /CNW/ - Sales of new high-rise condominium suites held firm in June while sales of new low-rise homes retreated due to record-low inventory levels of that product type, the Building Industry and Land Development Association (BILD) announced today.

According to RealNet Canada Inc., BILD's official, independent source of new home market intelligence, there were 2,920 new homes and condos sold in June 2010. While high-rise condo sales remained right in line with 2009 (and 2008), low-rise (single-detached, semi-detached town-home) sales were off by 46 per cent, resulting in a 26 per cent decrease in total new home sales June/June. "It's a tale of two markets," quipped BILD President and CEO Stephen Dupuis.

With the first half of 2010 in the books, the recovery in new home sales is revealed by a 69 per cent increase in total new home sales driven by a dramatic 142 per cent increase in sales of high-rise condominium suites. Even compared with January-June 2008, total new home sales are up a healthy 22 per cent.

"By this point last year, the new housing market was nearing full recovery from the global financial crisis. We're now comparing apples with apples and on that basis, the new home market appears to be on relatively solid footing at this time," Dupuis said.

He pointed out that the low-rise market is up 29 per cent on a year-to-date basis, with the June decline reflecting an over-shot last year when sales spiked by 60 per cent, as well as the record low inventory levels of detached, semi-detached and townhomes. "With relatively few new project openings thus far this year, low-rise sales have been naturally constrained," Dupuis stated.

June new home sales were split 60 per cent high-rise, 40 per cent low-rise and through the first six months of the year 53 per cent high-rise, 47 per-cent low-rise.

    
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    June '10  Low Rise             High Rise                Total
    -------------------------------------------------------------------------
                            %                     %                      %
    Region   2009   2010  Change  2009   2010   Change  2009    2010   Change
    -------------------------------------------------------------------------
    Durham   260    301    15.8%    7       6   -14.3%   267     307    15.0%
    -------------------------------------------------------------------------
    Halton   426    108   -74.6%   28      41    46.4%   454     149   -67.2%
    -------------------------------------------------------------------------
    Peel     408    259   -36.5%  256      50   -80.5%   664     309   -53.5%
    -------------------------------------------------------------------------
    Toronto   85     92     8.2% 1,215   1,344   10.6%  1,300   1,436   10.5%
    -------------------------------------------------------------------------
    York     965    396   -59.0%  275     323    17.5%  1,240    719   -42.0%
    -------------------------------------------------------------------------
    GTA     2,144  1,156  -46.1% 1,781   1,764   -1.0%  3,925   2,920  -25.6%
    -------------------------------------------------------------------------
    Jan-
     June   7,451  9,571   28.5% 4,153  10,030  141.5% 11,604  19,601   68.9%
    -------------------------------------------------------------------------
    Source: RealNet Canada Inc.
    

With more than 1,300 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: For further information: Andrei Zaretski, Manager, Communications, 416-391-3450 or 416-843-4898, communications@bildgta.ca; Stephen Dupuis, President, Chief Executive Officer, 416-391-3453 or 416-948-8654, sdupuis@bildgta.ca


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