February 22 - GTA low-rise market gains ground

February 22, 2012

GTA low-rise market gains ground

Greater Toronto, February 22, 2012 - The low-rise sector outsold its high-rise counterpart for first time in 12 months this January, the Building Industry and Land Development Association (BILD) revealed today.

According to RealNet Canada Inc., BILD's official source of new home market intelligence, there were 1,794 new homes and condominium units sold in the GTA in January. Low-rise sales amounted to 1,128 sales - a nearly identical figure to that of January 2011 - while capturing 63 per cent of the market share.

The high-rise sector took an expected dip in January as builders sell off existing inventory before launching new projects in the spring.

"This time of year is typically used for developers to sell existing units while agencies put together new marketing campaigns and construct sales offices," BILD Chair Paul Golini Jr. explained. "While the 40 per cent decline in the high-rise sector might seem like a lot, it follows a record-breaking year in condominium sales, so it's not a fair comparison."

The continuing trend of activity in the 905 Regions carried into 2012, particularly in York, where high-rise and low-rise sales both increased by a combined total of 12.5 per cent.

The low-rise price index in the GTA rose seven per cent over January 2011 to $551,372 while the high-rise price index went virtually unchanged at $445,854.

January '12

Low Rise

 

High Rise

 

Total

 

Region

2011

2012

% Change

2011

2012

% Change

2011

2012

%Change

Durham

181

217

19.9%

12

3

-75.0%

193

220

14.0%

Halton

215

164

-23.7%

46

24

-47.8%

261

188

-28.0%

Peel

289

264

-8.7%

100

20

-80.0%

389

284

-27.0%

Toronto

47

23

-51.1%

841

485

-42.3%

888

508

-42.8%

York

405

460

13.6%

123

134

8.9%

528

594

12.5%

GTA

1,137

1,128

-0.8%

1,122

666

-40.6%

2,259

1,794

-20.6%

Source: RealNet Canada Inc.

With more than 1,350 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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