January 25 - 2006 a very good year for new home sales

January 30, 2007

2006 a very good year for new home sales

High-rise market share hits all time-high

Toronto— Sales of new high-rise condominium suites in the Greater Toronto Area last year came within a hairs-breadth of the all-time high while the proportion of high-rise sales smashed the all time record, Bob Finnigan, president of the GTHBA-UDI, said today.

The new home sales data, compiled for GTHBA-UDI by RealNet Canada Inc., reveals that there were 17,617 new high-rise condominium suites sold in 2006, a mere 23 units fewer than in 2005, when the previous record was established. However, with 4.4 out of every 10 new home sales in 2006 being high-rise condominiums, the proportion of the total new home market made up of this built-form reached new heights, up from 42 per cent in 2005 and 33 per cent in 2004.

In total, there were 39,790 new home sales in 2006, down 2,202 units or 5 per cent from 2005, but still a very good year relative to the forecasts and historical standards. While high-rise sales held their own, low-rise (single- and semi-detached units and town-homes) unit sales declined by nine per cent year over year resulting in the overall five per cent decrease.

“The new home market remains strong and vibrant, based first and foremost on the aspirations of GTA home buyers to buy their first home or move up to their dream-home, combined with low mortgage rates and tremendous choice and value in the new home market,” Finnigan said.

Finnigan noted that the increasing high-rise market share is a reflection of the $82,097 price differential between low- and high-rise units. The RealNet new home price index for low-rise homes currently sits at $403,450 while the high-rise index is $321,353.

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.

Finnigan added that the price differential shrunk from over $95,000 a year ago, as high-rise prices increased much more (9.1 per cent) than low-rise prices (3.4 per cent) over the last year. On that basis, he foresees a rebalancing of the market in 2007 with a very healthy forecast of 37,500 new home sales split 60/40 low/high rise.

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.

December Sales by Region

 

LOW-RISE

HIGH-RISE

TOTAL

Region

 Dec 2005

 Dec 2006

% Change

 Dec 2005

 Dec 2006

% Change

 Dec 2005

 Dec 2006

% Change

Durham

180

211

17%

5

6

20%

185

217

17%

Halton

214

216

1%

12

18

50%

226

234

4%

Peel

315

358

14%

77

67

-13%

392

425

8%

Toronto

117

53

-55%

801

517

-35%

918

570

-38%

York

331

359

8%

48

112

133%

379

471

24%

GTA

1,157

1,197

3%

943

720

-24%

2,100

1,917

-9%


Annual Sales by Region

 

LOW-RISE

HIGH-RISE

TOTAL

Region

 2005

 2006

% Change

 2005

 2006

% Change

 2005

 2006

% Change

Durham

4,309

3,620

-16%

495

323

-35%

4,804

3,943

-18%

Halton

3,504

4,545

30%

478

168

-65%

3,982

4,713

18%

Peel

7,252

6,011

-17%

2,075

2,496

20%

9,327

8,507

-9%

Toronto

1,480

1,374

-7%

12,754

12,247

-4%

14,234

13,621

-4%

York

7,807

6,623

-15%

1,838

2,383

30%

9,645

9,006

-7%

GTA

24,352

22,173

-9%

17,640

17,617

-0.1%

41,992

39,790

-5%

Source: RealNet Canada Inc.

-30-

For more information:

Suzanna Cohen
Director of Communications
scohen@gthba.ca

Stephen Dupuis
Chief Executive Officer
sdupuis@gthba.ca