Jul 14 - June new home sales cap solid first half

July 25, 2005

Condos driving market

July 14, 2005

June new home sales cap solid first half

Toronto- A healthy surge in new home sales in June capped off a very solid first half of the year for new home buyers and builders, Julie Di Lorenzo, president of the Greater Toronto Home Builders' Association announced today.

Sales of new homes and condominiums across the Greater Toronto Area rose 19 per cent in June, driven by a whopping 48 per cent increase in condominium suite sales. Sales of low-rise suburban homes were up a more modest 4 per cent in June.

Through the first six months of the year, new home sales are running slightly ahead (2 per cent)of the first half of 2004, however the low-rise and high-rise markets have been pulling in opposite directions with low-rise sales declining by 12 per cent and high-rise sales rising by a remarkable 38 per cent.

"High-rise condominium sales have been driving the market all year long," said Di Lorenzo. "The market share of high-rise condominium suites has grown from 33 per cent last year to 41 per cent so far this year. It's totally a function of affordability," Di Lorenzo added, noting that the new home price index for low-rise homes was rising much faster (16 per cent) than high-rise (11 per cent) on a year over year basis.

The GTA new home price index increased slightly over May to $386,536 for low-rise homes and $284,427 for high-rise apartments.

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.

The top five municipalities in the GTA for June were Toronto (1,291), Markham (520), Brampton (446), Mississauga (331) and Ajax (316).

With more than 1,300 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 2004

June 2005

% Change

June 2004

June 2005

% Change

June 2004

June 2005

% Change

Durham

376

573

52%

31

29

-6%

407

602

48%

Halton

309

225

-27%

5

46

820%

314

271

-14%

Peel

688

676

-2%

178

104

-42%

866

780

-10%

Toronto

124

150

21%

844

1,141

35%

968

1,291

33%

York

727

689

-5%

62

337

444%

789

1,026

30%

GTA:

2,224

2,313

4%

1,120

1,657

48%

3,344

3,970

19%


For further information:
Suzanna Cohen, Director of Communications 416-391-3450
Stephen Dupuis, Executive Vice President 416-391-3453