Low-rise sector suffers limited supply at year's end

TORONTO, Jan. 23, 2013 /CNW/ - Sales of new ground-related housing in 2012 added up to the second-lowest total since 2000 as constrained land continues to affect affordability for new home buyers in the GTA, the Building Industry and Land Development Association (BILD) reported today.

According to RealNet Canada Inc., BILD's official source of new home market intelligence, the 14,069 new detached, semi-detached and town homes sold in the GTA last year declined by 20 per cent from 2011 while representing 43 per cent of the GTA's new homes market.

The Index Price for a new low-rise home reached a new record high of $632,868 at the end of 2012, representing a 16 per cent increase over 2011 and bringing the price gap between high- and low-rise to a new record of $196,844.

"Governments must acknowledge that the constraints being placed on the market, particularly in the low-rise sector, are having dire results," said BILD First Vice-Chair Steve Deveaux. "Land constraints, regulatory requirements and a complex approval process fraught with delays are seriously challenging the vitality of the low rise sector, as well as housing choice for the new home buyer.

"In simple terms, today's low-rise purchasers are coming out on the losing end of a supply and demand equation."

Total new home sales in 2012 declined by 29 per cent from 2011 to 32,824 homes - finishing 18 per cent below the long-term average after a strong first half.

"In the first half of 2012 our industry experienced an average year and was on pace to bring 40,000 new homes into the market - the number needed to accommodate the 100,000 new residents that call the GTA home every year," said BILD President and CEO Bryan Tuckey.

"In July, the federal government introduced new, stricter lending restrictions that further reduced affordability and housing choice for new home buyers, decreasing  consumer confidence and significantly reducing sales in the GTA. "

Sales of high-rise condominiums in 2012 were the fourth-highest since 2000. With 237 projects containing 60,713 units currently under construction, 88 per cent are pre-sold as a large group of home buyers continues to show strong demand for the GTA's condominium market.

A statistical backgrounder can be found here. For additional information, contact Amy Lazar or Andrei Zaretski.

Dec '12	Low Rise			High Rise			Total
Region	2010	2011	2012	2010	2011	2012	2010	2011	2012
Durham	123	111	76	6	5	10	129	116	86
Halton	223	131	90	24	35	40	247	166	130
Peel	280	200	139	125	31	41	405	231	180
Toronto	36	35	13	663	795	355	699	830	368
York	283	335	85	81	211	55	364	546	140
GTA	945	812	403	899	1,077	501	1,844	1,889	904
Jan-Dec	16,394	17,543	14,069	20,915	28,734	18,755	37,309	46,277	32,824

Source: RealNet Canada Inc.

With more than 1,400 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/2013/01/23/20130123_C7733_DOC_EN_22827.pdf

SOURCE: Building Industry and Land Development Association

For further information:

Amy Lazar
Manager, Communications
416-391-3452 or 416-543-3903
[e-mail] 

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