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

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