March 21 - Housing market continues to face challenges

March 21, 2013

Housing market continues to face challenges

Greater Toronto, March 21, 2013 - For the first time in many months, sales of new detached, semis and townhomes in the GTA outperformed those in the new condominiums in February, the Building Industry and Land Development Association (BILD) announced today.

According to RealNet Canada Inc., BILD's official source for new home market intelligence, new home buyers purchased 2,030 new homes and condominiums in the GTA in February. The 1,078 low-rise sales add up to the second-lowest February on record, despite outperforming the high-rise market which tallied 952 sales.

"This February, we observed stronger sales in low-rise projects situated in desirable locations where there is pent-up demand for new ground-related housing," said BILD President and CEO Bryan Tuckey. "However, the housing market is still performing below average."

Consumer confidence has been affected by the stricter mortgage lending rules, Tuckey added. However, the 952 new high-rise sales in the month of February say that the condominium lifestyle is still an attractive and affordable option for new home buyers in the GTA.  High-rise sales were only 7 per cent lower than February 2012.

The RealNet New Home Price Index showed a 13 per cent increase in new low-rise homes, bringing the current figure to $639,124. Pricing for new high-rise homes was up 1.3 per cent to $539 per square foot, while smaller unit sizes brought average price per unit down 1.3 per cent to $432,021.

A statistical backgrounder can be found here. For additional information, contact Amy Lazar at 416-391-3452 or 416-543-3903 or Andrei Zaretski at 416-391-3453 or 416-843-4898.

Feb '13

Low Rise

High Rise

Total

Region

2011

2012

2013

2011

2012

2013

2011

2012

2013

Durham

261

221

185

12

3

4

273

224

189

Halton

145

297

73

49

71

34

194

368

107

Peel

476

493

287

51

23

24

527

516

311

Toronto

44

20

51

1,745

762

700

1,789

782

751

York

559

552

482

346

167

190

905

719

672

GTA

1,485

1,583

1,078

2,203

1,026

952

3,688

2,609

2,030

Jan-Feb

2,619

2,758

1,660

3,305

1,771

1,734

5,924

4,529

3,394

Source: RealNet Canada Inc.

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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.