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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