realnet New home sales in the GTA declined for a third consecutive month and new lending restrictions are to blame, says a new report released today by BILD and RealNet.

There were 2,792 new homes sold in October, making it the second-lowest October on record. With August and September also logging low numbers, the 29,322 new homes sold thus far in 2012 is 14 per cent below the long-term average.

“In an attempt to cool down the market, the federal government has severely affected the building and development industry in the GTA,” BILD President and CEO¬†Bryan Tuckey said in a press release. “The introduction of stricter mortgage regulations has triggered a decline in new home sales, and if this trend continues, it will affect job creation in the coming years, restricting economic growth.”

Here are a few highlights from freshly released RealNet numbers:

  • Year-to-date sales are 14 per cent below the long-term average, the third lowest in BILD’s records.
  • It was the fifth highest October on record for new high-rise sales (1,914 sales).
  • It was the second lowest October on record for new low-rise sales (878 sales).
  • With sales 18 per cent higher than the long term average, YTD high-rise sales in October were the fourth highest on record.
  • With sales 37 per cent lower than the long term average, YTD low-rise sales in October were the second lowest on record.
  • The High Rise Index Price rose 1.9 per cent from 2011 ($439,328).
  • The Low Rise Index Price rose 15.7 per cent from 2011 ($616,623).
  • High-rise remaining inventory is at the highest level on record (21,717 units) while low-rise inventory is sitting at the highest level since January 2011 but is still very low (7,331 units).


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