December 20 - All-Time Record Condo Sales

December 21, 2007

 

ALL-TIME RECORD SET

New condos selling like hotcakes

December 20, 2007 -- In a year of firsts for the new condominium market, another record was set last month as sales of new condos exceeded the 20,000 unit threshold for the first time ever, Bob Finnigan, president of the Building Industry and Land Development Association revealed today.

With another 2,243 high-rise condominium suites sold in November (up 35 per cent over November, 2006), new condo sales for the first 11 months of 2007 have reached 22,059 units and BILD is projecting approximately 23,000 sales to year end, smashing the previous record of 17,561 units sold in 2005.

“New condos are basically selling like hotcakes, it’s as simple as that,” said Finnigan. Condo sales are up 32 per cent through the first eleven months of 2007, driving a 14 per cent increase in total new home sales. “The year 2007 will go down as the year of the condo,” Finnigan declared.

“This year also marks the first-time that high-rise housing sales have outstripped low-rise (single-detached, semi-detached, town-home), with an astounding 52 per cent of all sales being high-rise in form,” Finnigan added.

Finnigan attributed the market transformation primarily to the relative affordability of condominiums compared to low-rise homes. “The RealNet new home price index for new low-rise homes rose 6.8 per cent in the last year and currently sits at $430,000 while the high-rise price index rose 8.6 per cent to $347,000.“The $83,000 price advantage for condominiums goes a long towards explaining the strength of the high-rise housing market,” he said.

With respect to the year over year price increases, Finnigan felt they were healthy enough to reward buyers and investors but modest enough when transaction costs are taken into account to preclude speculation.

 Region

Low Rise

High Rise

Total

 

Nov 2006

Nov 2007

% Change

Nov 2006

Nov 2007

% Change

Nov 2006

Nov 2007

% Change

Durham

223

213

-4%

14

10

-29%

237

223

-6%

Halton

390

272

-30%

16

26

63%

406

298

-27%

Peel

412

283

-31%

313

73

-77%

725

356

-51%

Toronto

87

88

1%

1,197

1,929

61%

1,284

2,017

57%

York

506

635

25%

117

205

75%

623

840

35%

GTA

1,618

1,491

-8%

1,657

2,243

35%

3,275

3,734

14%

Total YTD

20,525

20,412

-1%

16,705

22,059

32%

37,230

42,471

14%


Source:  RealNet Canada Inc.

With more than 1,500 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.

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For further information:
Cynthia Malagerio
Manager of Communications 
416-391-3450 or 416-951-4081
communications@bildgta.ca   

Stephen Dupuis
Chief Executive Officer
416-391-3453 or 416-948-8654
sdupuis@bildgta.ca