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New home sales second-lowest in decade at year's end

Greater Toronto, January 24, 2014 - Sales of new homes and condominiums in the GTA finished off 2013 at 23 per cent below the 10-year average due to low levels of supply, the Building Industry and Land Development Association (BILD)announced today.

According to RealNet Canada Inc., BILD's official source for new-home market intelligence, 28,406 new home sales were recorded in 2013. Only 2008 saw fewer annual sales in the last decade. 

High-rise sales amounted to 16,201, down 13 per cent from 2012, while the 12,205 low-rise sales declined 13 per cent and registered second-lowest in 10 years.

"In 2013 we saw the second-lowest level of supply in the last decade, which resulted in higher prices for new homes, particularly in ground-related housing," said BILD president and CEO Bryan Tuckey. "The GTA remains challenged by constrained land supply and an outdated development approvals process which delays the introduction of new inventory into the market."

Tuckey noted that he was encouraged to see sales in December up 79 per cent over December 2012, marking the fifth consecutive month of year-over-year increases.

The RealNet New Home Price Index showed a 3.4-per-cent increase in the low-rise sector over December 2012, bringing the price to $654,147 at the end of the year. The price index of new high-rise homes remained unchanged at $436,564, while the price per square foot rose slightly by one per cent.

Tuckey noted that up to 100,000 people choose to make the GTA their home each year, and when combined with an increased fertility rate, amounts to as many as 38,000 new family formations.

"Sales of new homes today will define the jobs of tomorrow, and now is the time for the industry, consumers and government to watch the market, and watch it carefully," he added. "We are all in this together and we need to work collaboratively to engage in a solution-oriented, fact-based discussion about building quality, complete communities that people in the GTA can afford to live in."

A statistical backgrounder of December new-home sales is available for viewing. For additional information, contact Andrei Zaretski or Aonghus Kealy.

Dec '13

Low Rise

High Rise

Total

Region

2011

2012

2013

2011

2012

2013

2011

2012

2013

Durham

109

83

110

5

12

0

114

95

110

Halton

131

92

33

35

28

79

166

120

112

Peel

201

127

181

31

49

29

232

176

210

Toronto

46

11

14

806

397

807

852

408

821

York

335

88

304

200

71

154

535

159

458

GTA

822

401

642

1,077

557

1,069

1,899

958

1,711

Jan-Dec

17,581

13,824

12,205

28,723

18,672

16,201

46,304

32,496

28,406

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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