June 21 - May new home sales up 19 per cent
June 21, 2007
May new home sales up 19 per cent
The new home market in May was even hotter than the record-breaking resale market, Bob Finnigan, President of the Building Industry and Land Development Association (formerly GTHBA-UDI), said today.
There were 3,935 new homes and condos sold in the Greater Toronto Area in May, up 19.4 per cent compared with May, 2006 besting the 18 per cent increase in existing home sales in May.
According to Finnigan, the big difference in May was the surprisingly strong low-rise (single-detached, semi-detached and town-home) market, which was up 29 per cent compared with last May. "While we are delighted to see the low-rise market strength, we see May as an anomaly based on the shortage of low-rise land available to home builders," Finnigan.
While high-rise (condominium suites and lofts) unit sales in the GTA were also up 7 per cent, the growth was concentrated in York, Halton and Durham Regions, whereas condominium sales in Toronto dropped by 6 per cent in May.
Finnigan forecast that the City of Toronto would continue to lose market share if it implements its proposed land transfer tax which would add more than $4,000 to the average priced home. "People will cross town to get the grocery store special, so they will definitely cross regional borders to avoid double taxation," Finnigan stated.
According to RealNet Canada Inc., the Association's official source of new home market information, May new home sales were split 62 per cent low-rise, 38 per cent high-rise. Through the first five months of the year, the split is 58/42 low/high. Year to date new home sales are running slightly ahead (0.5 per cent) through the first five months of the year.
Source: RealNet Canada Inc.
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