February 28 - Builders' pleased with new home market pulse

February 28, 2007

Builders' pleased with new home market pulse

Toronto- The strange January weather seems to have affected new home sales in the GTA in January, with sales off by 26 per cent compared with January, 2006, Bob Finnigan, president of the GTHBA-UDI said today.

According to RealNet Canada Inc., there were 1,942 new homes and condos sold across the GTA in January, with low-rise product (single-detached, semi-detached, townhomes) accounting for an unusually high (of late) 67 per cent of all sales.

Looking back at our sales history, monthly numbers do fluctuate substantially year over year. While this January's numbers are down from last year, they are almost identical to those of 2005 (2,061 units) which was a great year with total sales of over 40,000 units.

Finnigan also notes that the bulk (73%) of the declines were in city of Toronto low-rise and Peel high-rise. "I suspect that last year's numbers were elevated by early new project launches in those areas," he said.
"In talking to the builders over the past week I have heard that they have been pleased with the market pulse this early in the year. And, we haven't even begun to see the new project or new phase launches that typically roll out at this time."

"We will be watching each month carefully but with the interest rates remaining historically low, minimal new home price increases, and healthy employment, the market should over the balance of the year come much closer to our projected targets" concludes Finnigan.

The GTA new home price index decreased to $390,057 for low-rise homes and $293,510 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.

With more than 1,500 members, GTHBA-UDI, formed through the merger of the Greater Toronto Home Builders' Association and Urban Development Institute/Ontario is the voice of the residential land development, home building and professional renovation industry in the Greater Toronto Area. We are proudly affiliated with the Ontario and Canadian Home Builders’ Associations.

January Sales by Region

 

LOW-RISE

HIGH-RISE

TOTAL

Region

Jan. 2006

Jan. 2007

% Change

Jan. 2006

Jan. 2007

% Change

Jan. 2006

Jan. 20067

% Change

Durham

305

236

-23%

28

4

-86%

333

240

-28%

Halton

302

303

0%

8

2

-75%

310

305

-2%

Peel

88

86

-2%

748

483

-35%

836

569

-32%

Toronto

575

353

-39%

91

86

-5%

666

439

-34%

York

396

317

-20%

70

72

3%

466

389

-17%

GTA

1,666

1,295

-22%

945

647

-32%

2,611

1,942

-26%

Source: RealNet Canada Inc.

-30-

For more information:

Suzanna Cohen
Director of Communications
scohen@gthba.ca

Stephen Dupuis
Chief Executive Officer
sdupuis@gthba.ca