News Releases

Condos driving force in new home market

September 20, 2006

Toronto- Condominiums continue to be the driving force in the GTA new home market based on the latest statistics for the month of August, Desi Auciello, president of the Greater Toronto Home Builders' Association, announced today. 

Of the 3,083 new homes sold in August, fully 44 per cent were high-rise condominium suites. Continuing another emerging trend, more than a third (38 per cent) of the high-rise sales were recorded outside the city of Toronto. Condominium sales in Peel region spiked 254 per cent in August.

August high-rise sales were up one per cent compared with August, 2005 and are up two per cent through the first eight months of the year.

Meanwhile, the low-rise market was off 14 per cent in August and twelve per cent year-to-date. Total new home sales are running 6 per cent behind 2005, but remain at very healthy levels by any standard.
Auciello pointed to the RealNet Canada Inc. new home price index as a key factor explaining the market trends, noting that the low-rise price index sits at $394,954 while the high-rise price index resides at a much more affordable  $312,851.

The index is essentially the average asking price of all the remaining new homes and condos currently available for sale. The new home price index is based on currently available new home offerings, weighted by remaining inventory, for projects of 15 or more units, excluding ultra-luxury product across the GTA.
The top five municipalities in the GTA for August were Toronto, 930; Mississauga, 506; Brampton, 362; Markham, 257 and Vaughan, 188.

With more than 1,400 members, the GTHBA is the voice of the residential construction industry in the Greater Toronto Area. Established in 1921, the association is comprised of land developers, home builders, professional renovation contractors, sub-contractors, suppliers, service, professional and financial firms. We are proudly affiliated with the Ontario and Canadian Home Builders' Associations.

Source: RealNet Canada Inc.

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Suzanna Cohen
Director of Communications