Nov 21 - New home sales up four per cent in October

November 21, 2006

New home sales up four per cent in October

Toronto- There were 4,012 new homes and condominiums sold in the Greater Toronto Area in October, up 4 per cent from October, 2005, Desi Auciello, president of GTHBA-UDI said today.

"The prevailing market trends were completely reversed in October," Auciello said. "Whereas monthly sales have been trailing last year by about five to six per cent on average, October sales were up. And whereas the high-rise market has been outperforming the low-rise market all year long, low-rise sales surged 17 per cent compared with October, 2005, while high-rise sales decreased by 12 per cent," Auciello added.

"It is far too early to suggest that we are witnessing a rebalancing of the low-rise and high-rise markets," Auciello stated. "New project openings can skew the market month to month. For example, sales in Halton region spiked 195 per cent in October, based on a five-fold increase in low-rise housing sales in Milton," he said.

The low-rise new home price index currently sits at $402,284 while the high-rise price index is at $315.754. The index is essentially the average asking price of all the remaining new homes and condos currently available for sale. 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.

According to RealNet Canada Inc., the independent source of market information for GTHBA-UDI, the top five municipalities in the GTA for October were Toronto, 1,448; Milton, 552; Markham, 418; Brampton, 369 and Mississauga, 278.

With more than 1,500 members, GTHBA-UDI, formed through the merger of the Greater Toronto Home Builders' Association and Urban Development Institute/Ontario is the voice of the residential land development, home building and professional renovation industry in the Greater Toronto Area. We are proudly affiliated with the Ontario and Canadian Home Builders' Associations.

Source: RealNet Canada Inc.