Mar 17 - February 2005 Sales Figures (Housing Statistics)

New home sales thaw out in February

March 17, 2005

Toronto- Following a bitterly cold January in which new home sales slipped in unison with the icy conditions, February witnessed a thawing effect as sales returned to much more comparable levels for the month.

There were 3,365 new homes and condos sold in the Greater Toronto Area in February, up 58 per cent over January, 2005 and down a modest 7.6 per cent from February, 2004.

Continuing a well established trend, higher sales of high-rise condominium apartments partially offset a decline in sales of low-rise (single-detached, semi-detached, links and townhouses) homes.

"Consumers were starting to react to all the new product offerings released by the builders in February notwithstanding the continued inclement weather. The buyer interest is definitely there, fuelled in large part by exceptionally low interest rates, and home builders are expecting March numbers to cap a very solid first quarter for the new home market," said Julie Di Lorenzo, president of the Greater Toronto Home Builders' Association.

Sales were split exactly two-thirds low-rise and one-third high-rise which has become the norm in the Greater Toronto Area marketplace.
The GTA new home price index increased remained stable at $373,557 for low-rise homes and $269,932 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 January are Toronto (827), Brampton (440), Vaughan (317), Mississauga (309). and Markham (248).

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