GREATER TORONTO, July 18, 2013 /CNW/ - The GTA's low-rise sector saw a brief rise in new home sales, but the momentum was not enough to resurge the market in June, the Building Industry and Land Development Association announced today.
According to RealNet Canada Inc., BILD's official source for new home market intelligence, sales of new single, semi and town homes in June outperformed June 2012, marking the first year-over-year increase in 2013. Despite this rare occurrence, total new home sales amounted to the lowest June on record at 2,341.
New home sales in the first half of 2013 came up as the second-lowest in a decade and 34 per cent below long-term average. The decline is largely seen as a result of reduced affordability, particularly in the low-rise sector which sits at 43 per cent below the long-term average as of June 30 - a record-low.
"Both the industry and the consumer are currently challenged by a considerable reduction of affordability and choice in the market," said BILD President and CEO Bryan Tuckey. "This has severely reduced new home sales, particularly in the low-rise market which is experiencing record-high pricing."
High-rise sales in the first half of 2013 totalled the second-lowest on record and 19 per cent below the long-term average.
The RealNet New Home Price Index showed a 6 per cent increase in the low-rise sector over June 2012, while high-rise pricing remained relatively unchanged. The price gap currently stands at approximately $208,439.
A statistical video analysis of June new home sales are available for download. For additional information, contact George Christopoulos or Andrei Zaretski.
|June '13||Low Rise||High Rise||Total|
|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.
SOURCE: Building Industry and Land Development Association
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