Aug 19 - GTA new home sales keep pace in July

August 19, 2009

GTA new home sales keep pace in July - Low-rise, 905 area sales up 120 per cent

Toronto, August 19, 2009 -- Total new home sales in the Greater Toronto Area during July remained on par with July, 2008, however sales of low-rise (single-detached, semi-detached, town-homes) surged an amazing 120 per cent while high-rise condo sales fell 44 per cent, Stephen Dupuis, President and CEO of the Building Industry & Land Development Association (BILD), announced today.

The monthly sales tracking by RealNet Canada Inc. on behalf of BILD reveals a grand total of 3,119 new home sales in July, comprised of 1,829 low-rise units (59%) and 1,290 high-rise units (41%).

"What a difference a year makes," Dupuis declared, noting that in July, 2008, roughly 3 out of every four new homes sold were high-rise condos, primarily in the City of Toronto, while in July, 2009, consumer preference has shifted overwhelmingly towards low-rise homes in the 905 communities.

Dupuis attributed the general improvement in the new home market to a combination of pent-up demand, improved consumer confidence, and super-low interest rates adding that
homebuilders have sharpened their pencils to cut costs and margins to the bone. "The result has been a dramatic increase in overall value and the big winner is the new homebuyer," he stated.

As for the shift towards low-rise, 905 area sales, Dupuis noted that the market is re-balancing following 2-3 years of quite elevated high-rise housing demand. 
 

July

Low Rise 

 

High Rise

 

Total

 

Region

2008

2009

% Change

2008

2009

% Change

2008

2009

%Change

Durham

116

217

87.1%

13

2

-84.6%

129

219

69.8%

Halton

216

307

42.1%

86

30

-65.1%

302

337

11.6%

Peel

155

432

178.7%

219

73

-66.7%

374

505

35.0%

Toronto

47

84

78.7%

1,913

1,040

-45.6%

1,960

1,124

-42.7%

York

297

789

165.7%

65

145

123.1%

362

934

158.0%

GTA

831

1,829

120.1%

2,296

1,290

-43.8%

3,127

3,119

-0.3%

Jan-July

9,341

9,147

-2.1%

10,450

5,408

-48.2%

19,791

14,555

-26.5%