Mar 21 - New home sales up 11 per cent this year (February sales figures)

March 21, 2006

New home sales up 11 per cent this year

March 21, 2006 

Toronto- With 3,303 new homes and condominiums sold in the Greater Toronto Area during February, the new housing market is off to a very solid start in 2006, up 11 per cent year over year, Desi Auciello, president of the Greater Toronto Home Builders' Association, said today.

The sales figures report was prepared for the GTHBA by RealNet Canada Inc.

Following a very strong January, February new home sales kept pace with the same month in 2005. Building on a trend first witnessed in January, the most recent monthly results saw an increase in low-rise sales, which were up 7 per cent. Meanwhile, high-rise sales fell by 12 per cent.

Low-rise (detached, semi-detached and townhomes) market share was even stronger in February, accounting for 70 per cent of all sales, versus 67 per cent in January and 58 per cent for all of 2005. At 30 per cent, high-rise apartment sales were much closer to the long-term average and certainly well below the commanding 42 per cent market share reached in 2005.

"I said last month that we would continue to watch the low-rise sales trend closely as this market is considered more of a bellwether for the overall housing market," Auciello stated. "It is too early to draw any firm conclusions but we will continue to watch this trend with great interest in the coming months," he added. 

The GTA new home price index remained steady at $389,593 for low-rise homes and $295,039 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 were Toronto, 876; Brampton, 459; Vaughan, 346; Ajax, 225 and Markham, 204.

 

LOW-RISE

HIGH-RISE

TOTAL

Region

Feb. 2005

Feb. 2006

% Change

Feb. 2005

Feb. 2006

% Change

Feb. 2005

Feb. 2006

% Change

Durham

391

477

22%

141

11

-92%

532

488

-8%

Halton

311

427

37%

8

19

138%

319

446

40%

Peel

532

585

10%

183

73

-60%

715

658

-8%

Toronto

109

116

6%

710

760

7%

819

876

7%

York

825

718

-13%

76

117

54%

901

835

-7%

GTA

2,168

2,323

7%

1,118

980

-12%

3,286

3,303

1%

Source: RealNet Canada

With more than 1,400 members, the GTHBA is the voice of the residential construction industry in the Greater Toronto Area. Established in 1921, the association is comprised of land developers, home builders, professional renovation contractors, sub-contractors, suppliers, service, professional and financial firms. We are proudly affiliated with the Ontario and Canadian Home Builders' Associations.

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For further information: Suzanna Cohen, Director of Communications