November new home sales spike 156 per cent

TORONTO , Dec. 21 /CNW/ - With both the low-rise and high-rise new housing markets now firing on all cylinders, sales of new homes and condos in the Greater Toronto Area spiked 156 per cent in November 2009 , the Building Industry & Land Development Association (BILD) disclosed today.

The monthly data from RealNet Canada Inc. reveals across-the-board gains with sales of low-rise (single-detached, semi-detached, townhomes) homes up 186 per cent and sales of high-rise condominium suites up 134 per cent.

Acknowledging that it would not be difficult to beat the market as it existed in late 2008, BILD President and CEO Stephen Dupuis noted that the current results are stronger than in 2005, 2006 and 2007, which were all great years.

"We're running out of superlatives to describe the market of late," Dupuis stated. "The low-rise market began its ascent in the late Spring while the high-rise market has been exceptionally strong the last three months. On a year-to-date basis, total sales are running 13 per cent ahead of 2008 with one month of data yet to come, defying all expert predictions."

As for the reasons for the market resurgence, while interest rates are a clear supporter, BILD's economic advisor, Dr. Frank Clayton , maintains that the initial recovery was stimulated by builders aggressively discounting inventory while the continuing strength is a reflection of very sharp pricing of new inventory.

Clayton adds that "one cannot ignore the extremely robust resale market with its rising prices, which is encouraging even more buyers of both resale and new homes to enter the market now."

    
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    November     Low Rise             High Rise               Total
     '09
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                               %                     %                     %
    Region    2008   2009 Change    2008   2009 Change    2008   2009 Change
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    Durham     142    281  97.9%      11     10  -9.1%     153    291  90.2%
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    Halton      92    290 215.2%      21    174 728.6%     113    464 310.6%
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    Peel       268    737 175.0%      23    139 504.3%     291    876 201.0%
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    Toronto     34     90 164.7%     697  1,514 117.2%     731  1,604 119.4%
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    York       116    466 301.7%     148    271  83.1%     264    737 179.2%
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    GTA        652  1,864 185.9%     900  2,108 134.2%   1,552  3,972 155.9%
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    GTA
    Jan-Nov 12,109 17,040  40.7%  14,682 13,187 -10.2%  26,791 30,227  12.8%
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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.

For further information: Stephen Dupuis, President, Chief Executive Officer, [phone] or [phone], [email protected]