May 26 - April new home sales encouraging

May 27, 2009

April new home sales encouraging

Toronto, On, May 26, 2009 - There were more new homes sold in the Greater Toronto Area in April, 2009 than in any other month since the onset of the global economic crisis last Fall, the Building Industry and Land Development Association revealed today.

According to RealNet Canada Inc., BILD's official source of new home market information, there were 1,880 new homes and condos sold in the GTA in April, compared with 1,485, or 876, 616, and 476 and units sold in the five months prior, respectively.

Expressing "pleasant surprise," BILD President and CEO Stephen Dupuis noted that while the trend line is improving, new home sales were still down 26 per cent compared with April, 2008, and the market remains extremely price-sensitive.

"Home builders have really sharpened their pencils to attract homebuyers and where the builder can add value, buyers are responding positively. On the other hand, any price increase where the buyer gets nothing in return, such as under the provincial government's  proposed HST on new homes, will be seen-through and rejected by homebuyers, at the expense of construction jobs and related spin-off benefits," Dupuis noted.

Dupuis further commented that the low-rise (single-detached, semi-detached, town-homes) market has been much stronger than the high-rise condo market so far this year, reflecting a more nimble response by low-rise builders to changed market circumstances.

April Low Rise    High Rise   Total  

Region

2008 2009 % Change 2008 2009 % Change 2008 2009 %Change
Durham 273 223 -18.3% 18 5 -72.2% 291 228 -21.6%
Halton 280 295 5.4% 10 3 -70.0% 290 298 2.8%
Peel 246 331 34.6% 101 97 -4.0% 347 428 23.3%
Toronto 75 54 -28.0% 798 398 -50.1% 873 452 -48.2%
York 642 426 -33.6% 98 48 -51.0% 740 474 -35.9%
GTA 1,516 1,329 -12.3% 1,025 551 -46.2% 2,541 1,880 -26.0%
Jan- April 5,613 3,388 -39.6% 4,558 1,469 -67.8% 10,171 4,857 -52.2%

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.