Sales of new GTA high-rise condominium suites held firm in June; whereas, sales of new low-rise homes retreated due to record-low inventory levels, says the Building Industry and Land Development Association (BILD).
According to RealNet Canada Inc., there were 2,920 new homes and condos sold in June 2010.
While high-rise condo sales remained right in line with 2009 (and 2008), low-rise (single-detached, semi-detached town-home) sales were off by 46 per cent, resulting in a 26 per cent decrease in total new home sales for June 2010 as compared to June 2009. “It’s a tale of two markets,” says BILD President and CEO Stephen Dupuis.
With the first half of 2010 in the books, the recovery in new home sales is revealed by a 69 per cent increase in total new home sales driven by a whopping 142 per cent increase in sales of high-rise condominium suites. Even compared with January-June 2008, total new home sales are up a healthy 22 per cent.
“By this point last year, the new housing market was nearing full recovery from the global financial crisis. We’re now comparing apples with apples and on that basis, the new home market appears to be on relatively solid footing at this time,” Dupuis said.
He pointed out that the low-rise market is up 29 per cent on a year-to-date basis, with the June decline reflecting an over-shot last year when sales spiked by 60 per cent, as well as the record low inventory levels of detached, semi-detached and townhomes. “With relatively few new project openings thus far this year, low-rise sales have been naturally constrained,” Dupuis stated.
June new home sales were split 60 per cent high-rise, 40 per cent low-rise and through the first six months of the year 53 per cent high-rise, 47 per-cent low-rise.