November 21 - October new home sales resilient

November 21, 2008

October new home sales resilient

Toronto, November 21, 2008 - Despite the financial crisis gripping the globe during October 2008, more than 2,100 new home buyers signed on the dotted line to purchase a new home or condo in the GTA, Michael Moldenhauer, president of the Building Industry & Land Development Association (BILD) said today.

"In the context of the unprecedented upheaval, amid all the negative headlines and general doom and gloom, the October sales results came as a very pleasant surprise, notwithstanding the fact that total sales were down 45 per cent compared with October, 2007," Moldenhauer stated.

"Had nothing unusual been happening on the macro-economic scene in October, I would have expected October sales to be down by approximately a third in line with the trend throughout this year. Remarkably, the whole global financial crisis only succeeded in scaring-off a minor proportion of would-be buyers, "Moldenhauer added.

Mr. Moldenhauer acknowledged that more than two-thirds of the 2,111 new home sales recorded during the month were the more affordable high-rise condo suites buoyed by several new project openings while asserting that homebuyers are "viewing the glass as half full, not half empty."

"The fundamentals that have buoyed the market to date remain in effect. These include positive employment and income growth, high net migration to the GTA, very low interest rates and reasonable housing affordability," Moldenhauer concluded.

October

Low Rise 

 

High Rise

 

Total

 

Region

2007

2008

% Change

2007

2008

% Change

2007

2008

%Change

Durham

264

151

-42.8%

31

27

-12.9%

295

178

-39.7%

Halton

189

105

-44.4%

74

16

-78.4%

263

121

-54.0%

Peel

316

238

-24.7%

433

42

-90.3%

749

280

-62.6%

Toronto

167

26

-84.4%

1,484

1,246

-16.0%

1,651

1,272

-23.0%

York

679

149

-78.1%

179

111

-38.0%

858

260

-69.7%

GTA

1,615

669

-58.6%

2,201

1,442

-34.5%

3,816

2,111

-44.7%

Jan to Oct

18,930

11,757

-37.9%

19,738

14,132

-28.4%

38,668

25,889

-33.0%

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.