June 21 - GTA new home sales up smartly in May

June 21, 2010

GTA new home sales up smartly in May

GREATER TORONTO, June 21 /CNW/ - New home buyers snapped-up 3,004 new homes and condominiums in May with sales of high-rise condominium suites leading the market surge, the Building Industry & Land Development Association (BILD) announced today.

According to RealNet Canada Inc., BILD's official, independent source of new home market information, the 3,004 new home sales represents a 13 per cent increase over May 2009. RealNet revealed that sales of high-rise condominium suites rose 66 per cent over this time last year, while sales of low-rise (single-detached, semi-detached and town-homes) units declined a modest 14 per cent year/year.

Through the first five months of 2010, total new home sales are up 116 per cent compared with the first five months of 2009. The resurgence in the new home market is being driven by the condominium sector which is up a whopping 244 per cent in comparison to the January-May 2009 period.

Acknowledging that comparisons with the first part of 2009 are exaggerated by the denominator (the first five months of 2009 unfolded under the dark cloud of the global economic crisis), BILD President and CEO Stephen Dupuis pointed out that total new home sales so far this year are running 26 per cent of the same period in 2008, well before the crisis.

Dupuis attributed the continued strength of the new home market to a combination of factors including homebuyers striking pre-emptively to avoid potentially higher interest rates and/or to beat the HST which takes effect July 1, 2010. He added that the launch of a number of well-located, distinctively-designed new condominium buildings has sparked that sector.

May '10

Low Rise

 

High Rise

 

Total

 

Region

2009

2010

% Change

2009

2010

% Change

2009

2010

%Change

Durham

241

380

57.7%

11

2

-81.8%

252

382

51.6%

Halton

323

200

-38.1%

10

60

500.0%

333

260

-21.9%

Peel

381

352

-7.6%

56

38

-32.1%

437

390

-10.8%

Toronto

95

17

-82.1%

758

1,188

56.7%

853

1,205

41.3%

York

734

582

-20.7%

54

185

242.6%

788

767

-2.7%

GTA

1,774

1,531

-13.7%

889

1,473

65.7%

2,663

3,004

12.8%

Jan-May

5,313

8,397

58.0%

2,373

8,170

244.3%

7,686

16,567

115.5%

Source:  RealNet Canada Inc.

With more than 1,300 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.