GTA: New Home Sales Slip in August

GREATER TORONTO, Ont. — Sales of new homes and condominiums in the GTA have declined in August, however, new home buyers have purchased 24,301 new homes so far in 2012, the Building Industry and Land Development Association (BILD) reported.
According to RealNet Canada Inc., BILD’s official source of new home market intelligence, the 1,242 homes sold in August 2012 add up to the lowest monthly sales since 2009 and the lowest August on record. Year-to-date sales have remained on par with 2010 but below its record-breaking 2011 predecessor.
“The federal government has been working on reducing household debt levels and recently adjusted mortgage lending rules. August was the first full month with the new rules in place and it appears these regulations have affected consumer confidence, resulting in significantly reduced sales of new homes,” said BILD President and CEO Bryan Tuckey. “BILD will be carefully monitoring new home sales during the next three months to see if this decline becomes a trend.”
Additional factors include lack of housing supply and choice for consumers as a result of the Province of Ontario's emphasis on intensification. The new homes industry has seen pricing for low-rise homes limit choice in housing options and affordability for many homebuyers.
The RealNet New Home Price Index currently sits at $609,369 and $436,460 for a low-rise and high-rise home, respectively.