New home prices outpace sales



    TORONTO, Sept. 26 /CNW/ - New low-rise home prices are up 5.9 per cent
while high-rise condo prices are up 17.9 per cent, year over year, despite a
moderation in new home sales in 2008, Michael Moldenhauer, President of the
Building Industry & Land Development Association said today.
    Moldenhauer noted that sales of new homes in August were down 40 per cent
from August, 2007, while year-to-date sales are down 29 per cent compared with
January-August, 2007. Putting these numbers in perspective, Moldenhauer noted
that the total of 22,043 new homes and condos sold in the first eight months
of 2008 represents a healthy market by any standard while comparisons with the
record-breaking year of 2007 would always pale.
    Moldenhauer added that the RealNet Canada Inc. new home price index for
low-rise product (single-detached, semi-detached & townhomes) has risen
$24,389 since last August (+5.9%) while the high-rise price index has jumped
by $58,833 (+17.9%).
    Moldenhauer attributed the low-rise housing price increase to a shortage
of land in that market and the high-rise price increase to increases in the
cost of construction including government-imposed costs such as development
charges.
    High-rise sales continue to dominate the market, taking a 60 per cent
market share (1067/1776 units) in August and a 53 per cent market share
(11,728/22,043) from January-August, 2008.

    
    -------------------------------------------------------------------------
               Low Rise             High Rise               Total
    August
    ---------------------    %     ------------    %    -------------    %
                          Change                Change                Change
    Region   2007   2008           2007   2008           2007   2008
    -------------------------------------------------------------------------
    Durham    234    158  -32.5%     44      7  -84.1%    278    165  -40.6%
    -------------------------------------------------------------------------
    Halton    284    131  -53.9%     21     26   23.8%    305    157  -48.5%
    -------------------------------------------------------------------------
    Peel      433    142  -67.2%    125    100  -20.0%    558    242  -56.6%
    -------------------------------------------------------------------------
    Toronto    77     61  -20.8%  1,119    840  -24.9%  1,196    901  -24.7%
    -------------------------------------------------------------------------
    York      483    217  -55.1%    119     94  -21.0%    602    311  -48.3%
    -------------------------------------------------------------------------
    GTA     1,511    709  -53.1%  1,428  1,067  -25.3%  2,939  1,776  -39.6%
    -------------------------------------------------------------------------
    Jan -
     Aug
     (GTA) 15,648 10,315  -34.1% 15,252 11,728  -23.1% 30,900 22,043  -28.7%
    -------------------------------------------------------------------------
    Source: RealNet Canada Inc.
    

    With more than 1,500 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.





For further information:

For further information: Cynthia Malagerio, Manager of Communications,
(416) 391-3450 or (416) 951-4081, communications@bildgta.ca; Stephen Dupuis,
Chief Executive Officer, (416) 391-3453 or (416) 948-8654, sdupuis@bildgta.ca


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