July 21 - GTA new home sales surge in June

July 21, 2009

GTA new home sales surge in June

July 21, 2009, Toronto - New home sales in the Greater Toronto Area reached levels not seen since June, 2007, with the 905 area low-rise housing market leading the way forward, Stephen Dupuis, President and CEO of the Building Industry & Land Development Association, revealed today.

There were 3,782 new homes and condos sold in the GTA in June, 2009, up 16 per cent over June, 2008. The surprising market strength was based on a 50 per cent increase in sales of low-rise (single-detached, semi-detached, town-homes) homes with York Region exhibiting particular strength. Meanwhile, sales of high-rise condominium suites were off by 9 per cent in June.

While the June new home sales results are quite positive, sales through the first half of 2009 are down 32 per cent compared with the first six months of 2008, reflecting weaker sales in the previous months.

Dr. Frank Clayton, Executive VP, Economic Consulting with the Altus Group and Economic Advisor to BILD quipped that "reality is contradicting the forecast" while noting that "caution remains the order of the day."

Clayton attributed the market strength in June to the fact that homebuilders are quickly responding to the changing marketplace by repositioning their product to what consumers want. His advice to homebuyers is to "get in fast because prices will never be better!"

June Low Rise    High Rise   Total  
Region 2008 2009 % Change 2008 2009 % Change 2008 2009 %Change
Durham 246 241 -2.0% 5 7 40.0% 251 248 -1.2%
  1,353 1,180 -12.8% 74 40 -45.9% 1,427 1,220 -14.5%
Halton 280 420 50.0% 35 30 -14.3% 315 450 42.9%
  1,570 1,549 -1.3% 401 68 -83.0% 1,971 1,617 -18.0%
Peel 263 402 52.9% 318 253 -20.4% 581 655 12.7%
  1,740 1,586 -8.9% 818 505 -38.3% 2,558 2,091 -18.3%
Toronto 105 74 -29.5% 1,280 1,135 -11.3% 1,385 1,209 -12.7%
  525 316 -39.8% 6,132 2,954 -51.8% 6,657 3,270 -50.9%
York 485 939 93.6% 237 281 18.6% 722 1,220 69.0%
  3,332 2,661 -20.1% 739 467 -36.8% 4,071 3,128 -23.2%
GTA 1,379 2,076 50.5% 1,875 1,706 -9.0% 3,254 3,782 16.2%
Jan-Jun 8,520 7,292 -14.4% 8,164 4,034 -50.6% 16,684 11,326 -32.1%