GTA new-home sales off to a slow start in January

GREATER TORONTO, Feb. 22, 2016 /CNW/ - 2016 is off to a slow start in the new home building and development industry. Following one of the biggest years ever for new homes in the GTA, in January sales of new homes were down, prices were mostly flat and new inventory was limited, the Building Industry and Land Development Association (BILD) announced today.

2015 was the third-highest volume sales year on record in the GTA. The average price of new homes hit record highs, particularly in the low-rise market where the average price eclipsed the $800,000 mark for the first time ever.

This year has started off slower. In January there were 1,614 new homes purchased in the GTA, which is down 10 per cent from the long-term average and 22 per cent below January 2015. Prices remain relatively unchanged.

BILD president and CEO Bryan Tuckey attributes the sales to reduced inventory of new homes available for sale in January.

"While the number of new projects launched in January was similar to last year, the number of actual units in these projects was significantly lower," he said. "You can't sell what you don't have, so fewer new homes brought to market means fewer sales."

The industry brought 1,379 new homes to market in January 2016 compared to 2,011 the same period last year.

Sales of high-rise condominiums were 17 per cent below the long-term average in January while sales of  low-rise homes, which includes detached, semi-detached and townhomes, were 5 per cent below the average.

"It is important to understand that one month does not a trend make," Tuckey said. "The next few months will tell a more accurate story about the market with the introduction of additional new projects across the GTA."

The average price of new low-rise homes was down by 1 per cent from December 2015. However the $822,926 January average is 17 per cent above the January 2015 average of $710,628. The price of a new detached home in the GTA was $985,899, down less than half a per cent from December 2015.

The average price of a new high-rise home in the GTA declined 1 per cent from December 2015 to $449,199 in January 2016, but that is in part the result of units' size continuing to get smaller.

The price per square foot of high-rise homes increased 4 per cent over the last 12 months from $558 to $581. The average size of a high-rise suite in January 2016 was 773 square feet compared to 796 square feet the year prior.

January New-Home Sales by Municipality:

January '16

Low Rise

High Rise

Total

Region

2014

2015

2016

2014

2015

2016

2014

2015

2016

Durham

140

147

265

7

10

53

147

157

318

Halton

281

337

129

92

154

39

373

491

168

Peel

259

291

237

34

43

39

293

334

276

Toronto

47

25

98

869

615

391

916

640

489

York

372

331

245

95

120

118

467

451

363

GTA

1,099

1,131

974

1,097

942

640

2,196

2,073

1,614

Source: RealNet Canada Inc.

With more than 1,450 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.

A statistical backgrounder is available for viewing.

SOURCE Building Industry and Land Development Association

For further information: or to schedule an interview, contact Andrei Zaretski, Manager of Marketing and Media Relations, at 416-391-3450 or 416-843-4898 or azaretski@bildgta.ca.

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