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New home sales continue to slide in June

Greater Toronto, July 18, 2013 - The GTA's low-rise sector saw a brief rise in new home sales, but the momentum was not enough to resurge the market in June, the Building Industry and Land Development Association announced today.

According to RealNet Canada Inc., BILD's official source for new home market intelligence, sales of new single, semi and town homes in June outperformed June 2012, marking the first year-over-year increase in 2013. Despite this rare occurrence, total new home sales amounted to the lowest June on record at 2,341.

New home sales in the first half of 2013 came up as the second-lowest in a decade  and 34 per cent below long-term average. The decline is largely seen as a result of reduced affordability, particularly in the low-rise sector which sits at 43 per cent below the long-term average as of June 30 - a record-low.

"Both the industry and the consumer are currently challenged by a considerable reduction of affordability and choice in the market," said BILD President and CEO Bryan Tuckey.  "This has severely reduced new home sales, particularly in the low-rise market which is experiencing record-high pricing."

High-rise sales in the first half of 2013 totalled the second-lowest on record and 19 per cent below the long-term average.

The RealNet New Home Price Index showed a 6 per cent increase in the low-rise sector over June 2012, while high-rise pricing remained relatively unchanged. The price gap currently stands at approximately $208,439.

statistical video analysis of June new home sales isavailable for viewing. For additional information, contact George Christopoulos or Andrei Zaretski.

June '13

Low Rise

High Rise

Total

Region

2011

2012

2013

2011

2012

2013

2011

2012

2013

Durham

281

209

225

5

38

2

286

247

227

Halton

188

94

73

74

120

86

262

214

159

Peel

385

303

391

316

87

148

701

390

539

Toronto

94

96

30

2,276

1,623

886

2,370

1,719

916

York

761

327

371

337

467

129

1,098

794

500

GTA

1,709

1,029

1,090

3,008

2,335

1,251

4,717

3,364

2,341

Jan-June

9,620

9,139

6,044

14,464

11,339

7,380

24,084

20,478

13,424

Source: RealNet Canada Inc.

With more than 1,400 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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For more information, contact:

George Christopoulos
Vice-President, Communications & Media Relations
416-391-3449
gchristopoulos@bildgta.ca

or

Andrei Zaretski
Manager, Marketing & Media Relations
416-391-3450 or 416-843-4898
azaretski@bildgta.ca