Aug 21 - Condo sales rising high in 905 regions in August

August 21, 2006

Condo sales rising high in 905 regions

August 21, 2006

Toronto- The great condo craze took on a new dimension in July as sales of high-rise condo suites in the 905 regions of Peel and York spiked at the expense of sales in the city of Toronto, Desi Auciello, president of the Greater Toronto Home Builders' Association, revealed today.

While high-rise unit sales were up a modest eight per cent across the GTA, they increased by a whopping 260 per cent in Peel region and an equally astounding 215 per cent in York region. Meanwhile, high-rise unit sales fell by 32 per cent in the city of Toronto.

Whereas Toronto typically accounts for 75-80 per cent of monthly high-rise unit sales, its share of the market fell to just 49 per cent in July as home buyers were attracted to high profile new high-rise condo developments in Markham and Mississauga.

"We're seeing the front edges of a gradual shift towards intensification of our suburban cores, although it won't be quite as dramatic as we are currently witnessing," said GTHBA president Desi Auciello. "The city of Toronto will continue to represent the solid core of the condo market, particularly as the waterfront lands come on stream, however the 905 regions are coming on strong," Auciello noted.

Auciello added that 46 per cent of total new home sales in July were high-rise condos, continuing a remarkable shift in purchasing behavior among new home buyers.

According to RealNet Canada Inc., the GTHBAs independent source of new home market information, there were 3,096 new homes and condos sold in July. High-rise unit sales were up eight per cent while low-rise unit sales (single-detached, semi-detached and town-homes) were down 18 per cent compared with July, 2005, resulting in a modest eight per cent overall decline in sales.

The GTA new home price index remained steady in July at $392,138 for low-rise homes and $312,966 for high-rise apartments. 

The index is essentially the average asking price of all the remaining new homes and condos currently available for sale, as calculated by RealNet Canada Inc., the GTHBA's independent source of new home market information.

The new home price index is based on currently available new home offerings, weighted by remaining inventory, for projects of 15 or more units, excluding ultra-luxury product across the GTA.
The top five municipalities in the GTA for June were Toronto, 817; Mississauga, 553; Markham, 453; Brampton, 353 and Vaughan, 169.

With more than 1,400 members, the GTHBA is the voice of the residential construction industry in the Greater Toronto Area. Established in 1921, the association is comprised of land developers, home builders, professional renovation contractors, sub-contractors, suppliers, service, professional and financial firms. We are proudly affiliated with the Ontario and Canadian Home Builders' Associations.

 

LOW-RISE

HIGH-RISE

TOTAL

Region

July 2005

July 2006

% Change

July 2005

July 2006

% Change

July 2005

July 2006

% Change

Durham

341

245

-28%

42

13

-69%

383

258

-33%

Halton

357

317

-11%

42

13

-69%

399

330

-17%

Peel

693

497

-28%

114

410

260%

807

907

12%

Toronto

107

119

11%

1,019

698

-32%

1,126

817

-27%

York

554

504

-9%

89

280

215%

643

784

22%

GTA

2,052

1,682

-18%

1,306

1,414

8%

3,358

3,096

-8%

 

 

 

 

 

 

 

 

 

 

 

Source: RealNet Canada Inc.

- 30 -

For further information:

Suzanna Cohen
Director of Communications