GTA new home sales impress at year's end

TORONTO, Jan. 20 /CNW/ - With the final month of GTA new home sales data officially in the books, the year which could have been so much worse turned out to be far better than anticipated, ending on a very strong up-note, the Building Industry and Land Development Association (BILD) revealed today.

According to RealNet Canada Inc., BILDs official source of new home market intelligence, there was a grand total of 33,615 new homes and condos sold in the GTA in 2009, up a healthy 24 per cent over 2008 but well below the 45,000 unit average for the 2000-2009 decade.

The market was lead higher by a 48 per cent year/year increase in sales of low-rise (single-detached, semi-detached and town-home) product in the 905 area code. The high-rise condo market was up a modest four per cent in 2009 but ended the year with a fourth quarter surge culminating in December when seven out of every 10 new homes sold (70 per cent) were high-rise condo suites versus 46 per cent on a January - December basis.

Putting the 2009 results in perspective, BILD President & CEO Stephen Dupuis noted that the recovery was kick-started by builders slashing costs and margins on inventory and new product to the bone, and propelled by an improving economy, increased consumer confidence and overall housing affordability. "We're not out of the woods yet but we're cautiously optimistic that we're on the right trail," Dupuis stated.

Looking ahead, BILD is projecting 29,000 sales for 2010, reflecting concerns with the pending implementation of the HST in Ontario combined with the withdrawal of government stimulus.

For the record, the 3,148 new home sales in December 2009 represent a stunning 553 per cent increase, under-scoring the market depths plumbed in December 2008 when a mere 482 new homes and condos were sold.

    
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    December     Low Rise             High Rise               Total
     '09
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                               %                     %                     %
    Region    2008   2009 Change    2008   2009 Change    2008   2009 Change
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    Durham      54    152 181.5%       0      4 400.0%      54    156  188.9%
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    Halton      66    108  63.6%       6     18 200.0%      72    126   75.0%
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    Peel        83    352 324.1%      17     59 247.1%     100    411  311.0%
    -------------------------------------------------------------------------
    Toronto     19     55 189.5%     166  1,817 994.6%     185  1,872  911.9%
    -------------------------------------------------------------------------
    York        50    253 406.0%      21    330 1471.4%     71    583  721.1%
    -------------------------------------------------------------------------
    GTA        272    920 238.2%     210  2,228  961.0%    482  3,148  553.1%
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    GTA
    Jan-Dec 12,302 18,190  47.9%  14,851 15,425    3.9% 27,153 33,615   23.8%
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    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.

For further information: Andrei Zaretski, Manager, Communications, [phone] or [phone], [email protected]; Stephen Dupuis, President, Chief Executive Officer, [phone] or [phone], [email protected]