September 26 - New home prices outpace sales

September 26, 2008

New home prices outpace sales
Toronto, On.- New low-rise home prices are up 5.9 per cent while high-rise condo prices are up 17.9 per cent, year over year, despite a moderation in new home sales in 2008, Michael Moldenhauer, President of the Building Industry & Land Development Association said today.

Moldenhauer noted that sales of new homes in August were down 40 per cent from August, 2007, while year-to-date sales are down 29 per cent compared with January-August, 2007. Putting these numbers in perspective, Moldenhauer noted that the total of 22,043 new homes and condos sold in the first eight months of 2008 represents a healthy market by any standard while comparisons with the record-breaking year of 2007 would always pale.

Moldenhauer added that the RealNet Canada Inc. new home price index for low-rise product (single-detached, semi-detached & townhomes) has risen $24,389 since last August (+5.9%) while the high-rise price index has jumped by $58,833 (+17.9%).

Moldenhauer attributed the low-rise housing price increase to a shortage of land in that market and the high-rise price increase to increases in the cost of construction including government-imposed costs such as development charges.

High-rise sales continue to dominate the market, taking a 60 per cent market share (1067/1776 units) in August and a 53 per cent market share (11,728/22,043) from January-August, 2008.

August

Low Rise 

 

 

High Rise

 

 

Total

 

 

Region

2007

2008

% Change

2007

2008

% Change

2007

2008

%Change

Durham

234

158

-32.5%

44

7

-84.1%

278

165

-40.6%

Halton

284

131

-53.9%

21

26

23.8%

305

157

-48.5%

Peel

433

142

-67.2%

125

100

-20.0%

558

242

-56.6%

Toronto

77

61

-20.8%

1,119

840

-24.9%

1,196

901

-24.7%

York

483

217

-55.1%

119

94

-21.0%

602

311

-48.3%

GTA

1,511

709

-53.1%

1,428

1,067

-25.3%

2,939

1,776

-39.6%

Jan to Aug

15,648

10,315

-34.1%

15,252

11,728

-23.1%

30,900

22,043

-28.7%

 

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.