GREATER TORONTO, - New home sales in the GTA saw a modest increase in September, but year-to-date figures are still the lowest in 10 years, the Building Industry and Land Development Association announced today.
According to RealNet Canada Inc., BILD's official source for new home market intelligence, total new home sales in September were up 4 per cent over September 2012 but after three Quarters, the 19,327 sales are down 44 per cent below the 10-year average.
The decline is attributed to the significant reduction in land supply for ground-related housing, resulting in near record low inventories and near record high pricing. At the end of the third Quarter, sales of new single, semi and towntomes sit at 63 per cent below the 10-year average.
"Constrained land supply has caused land prices to increase dramatically over the past decade, particularly in the low and medium density sectors where it has grown as much as 237 per cent," said BILD President and CEO Bryan Tuckey. "Near record high pricing has pushed the affordability of ground-related housing beyond the reach of many new home buyers in the GTA. This has resulted in a considerable reduction in sales, and the economic effects will likely be felt within a few years."
The RealNet New Home Price Index showed a 6 per cent increase in the low-rise sector over September 2012, bringing the price to $658,869. The price per square foot in the high-rise sector grew modestly but unit pricing declined by 1 per cent to $432,853 as unit size decreased by 2 per cent.
A statistical video analysis of September new home sales is available for viewing. For additional information, contact Amy Lazar or Andrei Zaretski.
With more than 1,400 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.
SOURCE: Building Industry and Land Development Association
