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Warmer weather could heat up the second quarter
Toronto, April 21, 2008 -The first quarter results are in and the long, hard winter of 2008 had the predictable dampening effect on new home sales with March sales down 20 per cent and January-March sales down 12 per cent, Michael Moldenhauer, president of the Building Industry & Land Development Association said today.
Moldenhauer noted that the high-rise condo market held its own in the first quarter despite the weather, with declines in the low-rise (single-detached, semi-detached, town-home) market accounting for the overall drop in Q1 sales.
"The second quarter will reveal the extent to which the weather versus other factors is affecting sales. We got off to a slow start in 2007 and ended up posting the second-best year ever, so we remain optimistic," said Moldenhauer.
Moldenhauer noted that the positive forces going forward include low and declining interest rates, healthy employment levels and a very competitive industry providing great value and choice in every price range.
Moldenhauer expressed concern with the continuing threats to housing affordability driven by land supply constraints, infrastructure bottlenecks and a host of government-driven cost increases that simply get passed on to new homebuyers.
| March | Low Rise | High Rise | Total | ||||||
| Region | 2007 | 2008 | 2007 | 2008 | 2007 | 2008 | |||
| Durham | 401 | 240 | -40.1% | 5 | 15 | 200.0% | 406 | 255 | -37.2% |
| Halton | 377 | 225 | -40.3% | 16 | 125 | 681.3% | 393 | 350 | -10.9% |
| Peel | 516 | 243 | -52.9% | 144 | 127 | -11.8% | 660 | 370 | -43.9% |
| Toronto | 110 | 65 | -40.9% | 1,315 | 1,328 | 1.0% | 1,425 | 1,393 | -2.2% |
| York | 549 | 618 | 12.6% | 423 | 91 | -78.5% | 972 | 709 | -27.1% |
| GTA | 1,953 | 1,391 | -28.8% | 1,903 | 1,686 | -11.4% | 3,856 | 3,077 | -20.2% |
| Q1 sales | 5,151 | 4,087 | -20.7% | 3,455 | 3,461 | 0.2% | 8,606 | 7,548 | -12.3% |
Source: RealNet Canada Inc.
With more than 1,500 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.
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