GREATER TORONTO, March 20, 2012 /CNW/ - After a record-breaking sales year in 2011, it would appear that the GTA new housing market is easing back into stability in early 2012, the Building Industry and Land Development Association (BILD) announced today.
According to RealNet Canada Inc., BILD's official source of new home market intelligence, February low-rise sales in the Greater Toronto Area increased by 16 per cent over its 2011 predecessor. However, these recent numbers fall very much in line with the historic trend when compared to February 2010, which saw 1,610 sales.
With 1,666 singles, semis and townhomes sold, the low-rise market captured the majority of the market share for the second time this year.
Meanwhile, the high-rise sector saw a 59 per cent decline, mostly caused by a transitional pause in the Toronto market as builders continue to sell existing inventory before launching a new series of projects.
"Following a slow period in late-2011, the low-rise sector has once again stabilized and we are seeing steady activity, particularly in the 905 markets," said BILD Acting President Joe Vaccaro. "On the high-rise side, while it may appear that sales are down from last year, it actually reflects the typical February lag as existing units are purchased while new condominium projects prepare to launch in the City of Toronto later this year."
Vaccaro pointed out that for new condominium purchasers, the high-rise price per square foot has increased only two per cent over February 2011, reflecting the design innovation and construction controls builders have in place to provide affordable units and stabilizing consumer prices.
New home buyers in the low-rise sector saw a 10 per cent increase in prices as the impact of regulatory inertia in the development approvals process, combined with increasing government-imposed charges and fees, have begun to impact the pricing of new units.
|February '12||Low Rise||High Rise||Total|
|Region||2011||2012||% Change||2011||2012||% Change||2011||2012||%Change|
Source: RealNet Canada Inc.
With more than 1,350 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.
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