TORONTO, April 23, 2013 /CNW/ - Sales of new detached, semi-detached and townhomes combined for the lowest March on record while prices continue to climb, the Building Industry and Land Development Association (BILD) announced today.
According to RealNet Canada Inc., BILD's official source for new home market intelligence, 973 low-rise homes were sold in the GTA in March, down 47 per cent from last year, while the RealNet New Home Price Index showed an 11 per cent increase. The high-rise sector amounted to 1,120 across the GTA, bringing total new home sales to 2,093 in March.
"BILD has been monitoring the effects of last July's federal government changes to mortgage rules for many months and we believe it has adversely affected consumer confidence and held many first-time buyers out of the market," said BILD President and CEO Bryan Tuckey.
Earlier this month, CIBC Deputy Chief Economist Benjamin Tal was quoted saying, "If you look at the overall situation, I think that Finance must be pleased by what they're seeing today. I don't think they see the slowdown as excessive, I think it is exactly what they had in mind."
In addition, the low-rise market in the GTA is suffering from decreasing affordability, as a result of constrained land supply and an outdated approvals process. New communities across the GTA are being held up 10 years in the planning approvals process, which is affecting the supply chain and driving prices up.
"Housing affordability poses significant challenges for the industry, new homebuyers and everyone living in the GTA," Tuckey added.
The price gap between low-rise and high-rise homes increase to a record $207,000, nearly tripling in the last four years as high-rise prices stabilized due to shrinking unit sizes. The high-rise price index increased 3 per cent from March 2012.
A statistical backgrounder can be found here. For additional information, contact Amy Lazar or Andrei Zaretski.
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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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