December 21 - November new home sales spike 156 per cent

December 21, 2009

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."

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

Copyright RealNet Canada Inc.

With more than 1,300 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, (416) 391-3453 or (416) 948-8654, sdupuis@bildgta.ca