New home sales slip in August

Building Industry and Land Development Association

GREATER TORONTO, Sept. 24, 2012 /CNW/ - Sales of new homes and condominiums in the GTA have declined in August, however, new home buyers have purchased 24,301 new homes so far in 2012, 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 1,242 homes sold in August 2012 add up to the lowest monthly sales since 2009 and the lowest August on record. Year-to-date sales have remained on par with 2010 but below its record-breaking 2011 predecessor.

"The federal government has been working on reducing household debt levels and recently adjusted mortgage lending rules. August was the first full month with the new rules in place and it appears these regulations have affected consumer confidence, resulting in significantly reduced sales of new homes," explained BILD President and CEO Bryan Tuckey. "BILD will be carefully monitoring new home sales during the next three months to see if this decline becomes a trend."

"Confidence in the new homes market is crucial to a healthy economy in the GTA," added BILD Chair Paul Golini Jr. "This industry employs more than 193,000 people, making it one of the largest contributors to economic growth in Ontario."

Additional factors include lack of housing supply and choice for consumers as a result of the Province of Ontario's emphasis on intensification. The new homes industry has seen pricing for low-rise homes limit choice in housing options and affordability for many homebuyers.

The RealNet New Home Price Index currently sits at $609,369 and $436,460 for a low-rise and high-rise home, respectively.

A statistical backgrounder on new home sales in July 2012 can be found here. Contact Andrei Zaretski at [email protected] or Amy Lazar at [email protected] for more information.

August '12	Low Rise			High Rise			Total
Region	2010	2011	2012	2010	2011	2012	2010	2011	2012
Durham	182	206	119	7	7	12	189	213	131
Halton	241	610	75	24	283	15	265	893	90
Peel	202	281	267	89	63	66	291	344	333
Toronto	18	47	22	751	1,027	469	769	1,074	491
York	356	385	114	108	587	83	464	972	197
GTA	999	1,529	597	979	1,967	645	1,978	3,496	1,242
Jan-Aug	11,212	12,357	10,710	12,347	18,055	13,591	23,559	30,412	24,301

Source: RealNet Canada Inc.

With more than 1,375 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/2012/09/24/20120924_C9062_DOC_EN_18350.pdf

SOURCE: Building Industry and Land Development Association

Amy Lazar
Manager, Communications
416-391-3452 or 416-543-3903
[email protected]

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