New lending restrictions impact home sales

Building Industry and Land Development Association

GREATER TORONTO, Oct. 22, 2012 /CNW/ - Sales of new homes and condominiums remained low in September - a result of new lending restrictions introduced in the summer, the Building Industry and Land Development Association (BILD) reported today.

"Changes to mortgage rules by the federal government and a tightening of lending for GTA projects by the banks have diminished consumer confidence and, ultimately, new home sales across the GTA," explained BILD President and CEO Bryan Tuckey. "It is important to recognize that the industry launched fewer new projects over the summer, which resulted in fewer home sales in September.

According to RealNet Canada Inc., BILD's official source of new home market intelligence, a total of 2,070 new homes were sold across the GTA, marking the second-lowest total for September in 13 years.

Year-to-date sales of 26,392 homes as of the end of September remained nearly identical to 2010 and down 23 per cent from the record-breaking 2011. High-rise sales remain third-highest on record at 19 per cent above the long-term average. Meanwhile, sales of low-rise homes add up to the second-worst ever recorded, resulting from high prices, a lack of product choice in ground-related housing and constrained land supply.

The RealNet New Home Price Index for a low-rise home rose 15 per cent to $623,245 declined 1 per cent in the high-rise sector to $439,265.

A statistical backgrounder can be found here. Contact Andrei Zaretski at [email protected] or Amy Lazar at [email protected] for more information.

Sept '12	Low Rise			High Rise			Total
Region	2010	2011	2012	2010	2011	2012	2010	2011	2012
Durham	177	244	129	6	4	9	183	248	138
Halton	286	185	58	56	53	14	342	238	72
Peel	211	247	459	197	156	63	408	403	522
Toronto	29	44	18	1,253	1,902	536	1,282	1,946	554
York	379	500	419	233	599	365	612	1,099	784
GTA	1,082	1,220	1,083	1,745	2,714	987	2,827	3,934	2,070
Jan-Sept	12,294	13,582	11,823	14,092	20,766	14,569	26,386	34,348	26,392

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/2012/10/22/20121022_C9082_DOC_EN_19633.pdf

SOURCE: Building Industry and Land Development Association

Amy Lazar 
Manager, Communications                                                  
416-391-3452 or 416-543-3903                                              
[email protected]                                                         

Andrei Zaretski
Manager, Marketing & Media Relations
416-391-3450 or 416-843-4898
[email protected]