June 22 - New home sales trend steadily improving

June 22, 2009

New home sales trend steadily improving

Toronto, June 22, 2009 -- With each successive month this year, the number of new home sales in the Greater Toronto Area has moved higher, the Building Industry and Land Development Association (BILD) said today.

There were 2,520 new homes and condos sold in the GTA in May, 2009, representing the highest monthly total so far this year

Sales of low-rise (single-detached, semi-detached, town-homes) rose by 9.3 per cent in May however sales of high-rise units declined by 53.1 per cent, resulting in the 24 per cent decline in total sales compared with May, 2008. 

"We're looking at a very positive trend-line with some quite interesting sub-trends between the low- and high-rise markets," said BILD President and CEO Stephen Dupuis. "We're seeing homebuyers shift from high- to low-rise purchases as they re-do the math and realize that between price adjustments, incentives and interest rates, they can afford a semi-detached, town-home or even a single-detached home versus a high-rise condo suite," Dupuis added.

Dupuis expressed optimism that the positive sales trend would continue in June based on anecdotal reports from builders, while cautioning that the market as a whole is still down 44.5 per cent through the first five months of the year. "We're clawing our way back but it's a slow process and a fragile situation," Dupuis concluded.

May

Low Rise 

 

High Rise

 

Total

 

Region

2008

2009

% Change

2008

2009

% Change

2008

2009

%Change

Durham

197

231

17.3%

12

8

-33.3%

209

239

14.4%

Halton

232

315

35.8%

102

11

-89.2%

334

326

-2.4%

Peel

527

384

-27.1%

121

56

-53.7%

648

440

-32.1%

Toronto

119

89

-25.2%

1,425

689

-51.6%

1,544

778

-49.6%

York

488

690

41.4%

71

47

-33.8%

559

737

31.8%

GTA

1,563

1,709

9.3%

1,731

811

-53.1%

3,294

2,520

-23.5%

Jan- May

7,158

5,131

-28.3%

6,280

2,330

-62.9%

13,438

7,461

-44.5%

Source:  RealNet Canada Inc.

With more than 1,400 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.