September 27, 2012
Greater Toronto area sees new home and condominium sales decline in August, reports BILD
Sales of new homes and condominiums in the Greater Toronto Area (GTA) declined in August, reported the Building Industry and Land Development Association (BILD) recently reported.
“The federal government has been working on reducing household debt levels and recently adjusted mortgage lending rules. August was the first full month with the new rules in place and it appears these regulations have affected consumer confidence, resulting in significantly reduced sales of new homes,” explained BILD president and chief executive officer Bryan Tuckey.
“BILD will be carefully monitoring new home sales during the next three months to see if this decline becomes a trend.”
Despite the August decline, new home buyers have purchased 24,301 new homes so far in 2012.
According to RealNet Canada Inc., BILD’s official source of new home market intelligence, the 1,242 homes sold in August 2012 add up to the lowest monthly sales since 2009 and the lowest August on record.
Year-to-date sales have remained on par with 2010 but below its record-breaking 2011 predecessor.
“Confidence in the new homes market is crucial to a healthy economy in the GTA,” added BILD Chair Paul Golini Jr. “This industry employs more than 193,000 people, making it one of the largest contributors to economic growth in Ontario.”
Additional factors to the August decline include lack of housing supply and choice for consumers as a result of Ontario’s emphasis on intensification.
The new homes industry has seen pricing for low-rise homes limit choice in housing options and affordability for many homebuyers. The RealNet New Home Price Index currently sits at $609,369 and $436,460 for a low-rise and high-rise home, respectively.
DCN NEWS SERVICES
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