Jul 19 - Condo craze contineus with 41 per cent increase

July 26, 2006

Condo craze continues with 41 per cent increase

July 19, 2006

New condo sold every four minutes in June

Toronto- There were more new high-rise condominium suites sold in the Greater Toronto Area in June than ever before as condo sales smashed the all-time record for market share, Desi Auciello, president of the Greater Toronto Home Builders' Association, said today.

"With an all-time high 2,397 new high-rise condos sold in June, home buyers were snapping up a new condo every four minutes the sales offices were open," said Auciello.

High-rise unit sales were up a whopping 41 per cent while total new home sales were up just two per cent as a result of an offsetting 28 per cent decline in low-rise (single-detached, semi-detached and townhome) sales.

According to RealNet Canada Inc., the association's independent source of new home market information, an astounding six out of every ten (60 per cent) new homes sold in June were high-rise suites. 
"Frankly, we never thought we'd see the day when low-rise product would represent the minority of our sales, particularly to this extent," Auciello stated. The previous high-rise market share peak was 46 per cent while the annual average (2005) is 42 per cent.

Auciello attributed the continuing condo craze to affordability and choice. "As house prices rise, home buyers seeking a toehold in the market are obviously turning in increasing numbers to the condo market," said Auciello, noting that the RealNet new home price index for high-rise condos ($314,370) is $80,000 less than for low-rise homes ($393,398).

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 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 the first six months of the year in the books, total new home sales of 21,866 units are down five per cent compared with the first half of 2005. High-rise sales are running two per cent ahead of last year while low-rise sales have declined by 10 per cent.

The top five municipalities in the GTA for June were Toronto, 1737; Mississauga, 585; Brampton, 355; Markham, 262 and Vaughan, 213.

With more than 1,400 members, the GTHBA is the voice of the residential construction industry in the Greater Toronto Area. Established in 1921, the association is comprised of land developers, home builders, professional renovation contractors, sub-contractors, suppliers, service, professional and financial firms. We are proudly affiliated with the Ontario and Canadian Home Builders' Associations.

 

LOW-RISE

HIGH-RISE

TOTAL

Region

June 2005

June 2006

% Change

June 2005

June 2006

% Change

June  2005

June 2006

% Change

Durham

542

240

-56%

31

81

161%

573

321

-44%

Halton

222

344

55%

45

7

-84%

267

351

31%

Peel

698

468

-33%

110

474

331%

808

942

17%

Toronto

144

85

-41%

1,145

1,652

44%

1,289

1,737

35%

York

636

486

-24%

375

183

-51%

1,011

669

-34%

GTA

2,242

1,623

-28%

1,706

2,397

41%

3,948

4,020

2%

Source: RealNet Canada Inc.

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For further information:

Suzanna Cohen
Director of Communications