New home sales remain low in May

GREATER TORONTO, June 19, 2013 /CNW/ - Reduced affordability in the GTA's new homes market continues to impair sales, the Building Industry and Land Development Association announced today.

According to RealNet Canada Inc., BILD's official source for new home market intelligence, the 2,539 new home sales in May amounted to the lowest May on record. The decline was mainly driven by the low-rise market, which dropped to 33 per cent below the 10-year average - also a record low.

Constrained land supply, as well as rising government fees and charges, are two factors behind the diminishing affordability observed in the GTA market. A new BILD-commissioned study, conducted by Altus Group, revealed that on average, government fees and charges amount to more than one-fifth of the cost of a new home.

"The issue of home affordability poses a significant challenge for new home buyers in the GTA," said BILD President and CEO Bryan Tuckey. "Government fees and charges continue to increase across the region, making it increasingly difficult for our industry to build affordable, safe, complete communities for the 100,000 people and 50,000 jobs that come to the GTA every year."

Land supply for ground-related housing has also affected pricing with low-rise inventory levels at record-low levels - down 46 per cent since 2009.

The RealNet New Home Price Index showed a 6 per cent increase in the low-rise sector over May 2012, bringing the price to record-breaking $644,427. Pricing for high-rise homes has remained relatively stable for several months, declining by 2 per cent to $431,955.

A statistical video analysis of May new home sales are available for download. For additional information, contact Amy Lazar or Andrei Zaretski.

May '13	Low Rise			High Rise			Total
Region	2011	2012	2013	2011	2012	2013	2011	2012	2013
Durham	281	263	165	4	79	2	285	342	167
Halton	118	239	164	47	49	87	165	288	251
Peel	576	346	475	207	83	110	783	429	585
Toronto	77	40	23	2,300	1,255	900	2,377	1,295	923
York	824	834	440	133	423	173	957	1,257	613
GTA	1,876	1,722	1,267	2,691	1,889	1,272	4,567	3,611	2,539
Jan-May	7,911	8,120	4,932	11,459	9,005	6,150	19,370	17,125	11,082

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.

 

SOURCE: Building Industry and Land Development Association

Amy Lazar
Manager, Communications 
416-391-3452 or 416-543-3903
[email protected]

Andrei Zaretski
Manager, Marketing & Media Relations
416-391-3450 or 416-843-4898 
[email protected]