February 19 - New home market weathers January snowstorms

February 19, 2008

New home market weathers January snowstorms

Toronto, Feb. 19- The New Year got off to a comparatively slow start for the new home market as January sales declined by 16 per cent compared with the year prior, Michael Moldenhauer, President of the Building Industry and Land Development Association said today.

According to RealNet Canada Inc., there were 1,703 new homes and condos sold across the GTA in January, compared with 2,039 sales in January, 2007. While the high-rise market was up 3 per cent January/January, the low-rise market (single-detached, semi-detached, town-homes) was down 26 per cent, resulting in the 16 per cent drop-off in total sales.

Moldenhauer attributed the modest January decline to seasonal effects including particularly inclement weather. "This is exactly the way 2007 started but the market eventually began gathering steam as the weather moderated and builders launched their new communities and projects," Moldenhauer said.

"With interest rates remaining historically low and lots of competition among builders, good value remains the driving force in the GTA new home market, leading builders to anticipate another good year," he added.

January new home sales were split 60 per cent low-rise, 40 per cent high-rise compared with 48/52 low-/high-rise split in 2007.

 

Low Rise

High Rise

Total

Region

Jan-07

Jan-08

% Change

Jan-07

Jan-08

% Change

Jan-07

Jan-08

% Change

Durham

267

181

-32.2%

3

11

266.7%

270

192

-28.9%

Halton

325

148

-54.5%

11

3

-72.7%

336

151

-55.1%

Peel

388

204

-47.4%

73

82

12.3%

461

286

-38.0%

Toronto

78

75

-3.8%

500

484

-3.2%

578

559

-3.3%

York

316

411

30.1%

78

104

33.3%

394

515

30.7%

GTA

1,374

1,019

-25.8%

665

684

2.9%

2,039

1,703

-16.5%

 

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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