August 23 - Hottest Summer ever for new home sales

August 23, 2007

HOTTEST SUMMER EVER FOR NEW HOME SALES

New condo sales up 90 per cent

August 23, 2007
Toronto, ON - The summer of 2007 is turning out to be as hot and steamy as the weather for the high-rise condo market in the Greater Toronto Area, Bob Finnigan, President of the Building Industry and Land Development Association (BILD), said today.

Total new home sales in the GTA in July surged nearly 60 per cent compared with July of 2006, while sales of high-rise condominium suites nearly double compared with last July, rising a whopping 90 per cent year over year. Not to be totally outdone, low-rise (single-detached, semi-detached, town-homes) unit sales jumped 33 per cent July 2006/July 2007.

"We're running out of superlatives to describe the new housing market this year," said Finnigan, who revealed that total new home sales through the first seven months of 2007 are running 15 per cent ahead of the same period last year (versus forecasts of declining sales in 2007).

"The good news, is that over the last 12 months, prices have only risen by 5.6 per cent for low-rise homes and 4.2 per cent for high-rise homes, and therein lays the explanation for the continued strength of the market. Healthy competition among builders is keeping affordability in check, with the benefits accruing to the home buying public," Finnigan added.

According to RealNet Canada Inc., BILD's official independent source of new home market information, this has been the hottest summer ever, by far, for new home sales. June/July sales of 9,900 units this year compares with roughly 8,000 sales recorded in 2002 and 2003. Combined sales of nearly 6,000 high-rise units this summer compares with 3,671 last summer's, which was second best-ever.

  Low Rise High Rise Total
Region July 2006     July 2007  % Change July 2006 July 2007  % Change July 2006 July 2007  % Change
Durham 233 358 53.6% 15 32 113.3% 248 390 57.3%
Halton 309 328 6.1% 13 40 207.7% 322 368 14.3%
Peel 492 478 -2.8% 381 149 -60.9% 873 627 -28.2%
Toronto 102 98 -3.9% 703 2,193 211.9% 805 2,291 184.6%
York 475 885 86.3% 333 326 -2.1% 808 1,211 49.9%
GTA 1,611 2,147 33.3% 1,445 2,740 89.6% 3,056 4,887 59.9%
Source:  RealNet Canada Inc.

Cynthia Malagerio
Manager Communications
416-391-3450or 416-951-4081

Stephen Dupuis
Manager of Chief Executive Officer
416-391-3453 or 416-948-8654