January 29 - Second best-year ever for new home sales

January 29, 2008

Second best-year ever for new home sales - Condo sales spike 34 per cent

January 29, 2008 - With another 1,785 new homes and condos sold in December, 2007, total new home sales last year reached 44,784 units, second only to 2002, when an astounding 53,669 units were sold.

Based solely on the strength of a 34 per cent spike in sales of new, high-rise condominium suites, total new home sales rose a solid 15 per cent in 2007 as compared with 2006. Low-rise new home sales held steady in 2007 compared with 2006.

The year 2007 will go down in the record books as the first year that high-rise housing sales (condo suites and lofts) outstripped low-rise (single-detached, semi-detached, town-homes) sales, reaching an astounding 52 per cent market share.

"The share of the market accounted for by high-rise product has risen steadily from 25-28 per cent in the 2000-2003 period to 32 per cent in 2004, 42 per cent in 2005, 45 per cent in 2006 and 52 per cent last year," said BILD CEO Stephen Dupuis.

Dupuis attributed the dramatic shift to a combination of government policy bias, relative affordability (the average condo is $77,000 less than the average low-rise home) and a broadening of the condo buyer profile well beyond first-time buyers.

As for prices, the RealNet Canada Inc. New Home Price Index for low-rise product rose 7.3 per cent in 2007, from $403,450 to $432,972, while the high-rise price index rose 10.8 per cent from $321,353 to $355,998 for a difference of $76,974.

 

Low Rise 

 High Rise

Total

Region

2006

2007

% Change 

2006

2007

% Change

2006

2007

% Change

Durham

3,529

3,717

5.3%

315

372

18.1%

3,844

4,089

6.4%

Halton

4,526

3,839

-15.2%

161

299

85.7%

4,687

4,138

-11.7%

Peel

5,901

5,221

-11.5%

2,478

1,810

-27.0%

8,379

7,031

-16.1%

Toronto

1,330

1,246

-6.3%

12,205

18,478

51.4%

13,535

19,724

45.7%

York

6,388

7,527

17.8%

2,194

2,275

3.7%

8,582

9,802

14.2%

GTA

21,674

21,550

-0.6%

17,353

23,234

33.9%

39,027

44,784

14.8%

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.