May 18 - April new home sales rise high - GST cut to spur market

May 19, 2006

April new home sales rise high

GST cut to spur market
May 18, 2006

Toronto- New home sales in the Greater Toronto Area continue to exceed forecasts with the high-rise condominium apartment market leading the way and the low-rise (single detached, semi-detached and townhome) market keeping pace.

There were 4,691 new homes and condos sold in the GTA in April 2006, up 2 per cent over April 2005, according to RealNet Canada Inc., the independent source of market information for the Greater Toronto Home Builders' Association.

High-rise condominium apartment sales accounted for an astounding 44 per cent of all new home sales in April, compared with a very solid year-to-date average of 40 per cent. Total new home sales for the January to April, 2006 period are running ahead of analysts expectations, coming in just slightly lower than the same period in 2005.

"We're quite pleased with the new home market performance so far this year, however we believe the best may be yet to come," said GTHBA president Desi Auciello, of Cachet Estate Homes. "The sales we are reporting today were all recorded prior to the announcement of the GST cut in the recent federal budget. Home buyers are responding quite enthusiastically to the tax reduction which we expect will be reflected in even stronger sales on a go forward basis," Auciello added.

Auciello noted that unlike any other good or service, the budget backdates the tax cut on new home sales to May 2nd.   "This was a very smart move by the federal government as home buyers would have headed to the sidelines otherwise. As it stands, home buyers have no incentive to delay their new home purchase - it's business as usual," Auciello concluded.

The GTA new home price index remained steady at $395,422 for low-rise homes and $299,578 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 April were Toronto, 1636; Brampton, 524; Vaughan, 500; Markham, 446; and Mississauga, 274.

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.

 

LOW-RISE

HIGH-RISE

TOTAL

Region

Apr. 2005

Apr. 2006

% Change

Apr. 2005

Apr. 2006

% Change

Apr. 2005

Apr. 2006

% Change

Durham

459

454

-1%

42

27

-36%

501

481

-4%

Halton

349

461

32%

19

12

-37%

368

473

29%

Peel

789

674

-15%

306

129

-58%

1,095

803

-27%

Toronto

135

178

32%

1,414

1,458

3%

1,549

1,636

6%

York

866

862

0%

232

436

88%

1,098

1,298

18%

GTA

2,598

2,629

1%

2,013

2,062

2%

4,611

4,691

2%

Source: RealNet Canada Inc.

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For further information: Suzanna Cohen