March 19 - High-rise condo sales up 20 per cent in February

March 19, 2008

High-rise condo sales up 20 per cent in February

Toronto, March 19, 2008 -- Sales of new high-rise condominium suites in the Greater Toronto Area were up a very healthy 20 per cent in February, Michael Moldenhauer, president of the Building Industry & Land Development Association (BILD), revealed today.

According to RealNet Canada Inc., there were 2,562 new homes and condos sold across the GTA in February compared with 2,727 sales in February, 2007. While the high-rise market was up by 20 per cent, the low rise (single-detached, semi-detached, town-homes) market was off by an equivalent amount (19 per cent). The 58/42 per cent weighting of low- to high-rise sales resulted in a 6 per cent decline in total sales year/year.

"Considering the absolutely nasty weather we experienced during the first two months of this year, new home sales have weathered the storm quite nicely, particularly on the high-rise side," Mr. Moldenhauer said.

Moldenhauer noted that the explanation for the surging high-rise market is the same as the explanation for the lagging low-rise market - affordability. "According to the RealNet New Home Price Index, it will cost you $57,000 less to get into the high-rise market, where the price index currently sits at $375,000, compared with the low-rise market where the price index is at $432,000," said Moldenhauer.

 

Low Rise 

High Rise

Total

Region

February 2007

February 2008

% Change

February 2007

February 2008

% Change

February 2007

February 2008

% Change

Durham

304

248

-18.4%

10

12

20.0%

314

260

-17.2%

Halton

357

241

-32.5%

16

122

662.5%

373

363

-2.7%

Peel

526

236

-55.1%

74

59

-20.3%

600

295

-50.8%

Toronto

91

80

-12.1%

693

744

7.4%

784

824

5.1%

York

563

690

22.6%

93

130

39.8%

656

820

25.0%

GTA

1,841

1,495

-18.8%

886

1,067

20.4%

2,727

2,562

-6.1%

Source:  RealNet Canada Inc.

With more than 1,500 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.