BILD’s New Home Sales Report for August
By Lucas on Sep 24, 2013
On Sept. 23, the Building Industry and Land Development Association (BILD) released its monthly sales report for August. According to RealNet Canada, BILD’s official source for new home marketing intelligence, prices are climbing and sales are dropping.
New high-rise sector
633 new high-rise units sold in August, which is 46% below the long-term average - making it the lowest August in a decade. Although sales are decreasing for the year, the pricing for condos has remained steady.
Genworth’s Summer 2013 Metropolitan Condo Outlook report is predicting that many developers will hold off releasing new product for the remainder of 2013 and even throughout 2014. But, keep your eye out for 2015. That’s when Genworth expects to see many new condo developments hitting the market again.
The region with the most high-rise sales for August is Toronto with 451. The total amount of sales for 2013 between January and August is just 9,172.
New low-rise sector
In August, 777 new low-rise units sold, which is an improvement from 2012, but still the third lowest August in 10 years. This is 43% below the long-term average. Although sales are lower than usual, the price index has hit a record high at $658,938. The price gap between high-rise and low-rise is the highest it has ever been at $222,149.
"Constrained land supply has severely diminished inventory in the low-rise sector, bringing prices to a considerable increase. Another factor is the rising government fees and charges which, on average, add up to one-fifth of the cost of a new home," said BILD President and CEO Bryan Tuckey, explaining that new home pricing affects prices of existing homes. "Affordability continues to be a challenge for everyone looking to buy a ground-related home in the GTA."
The region with the most low-rise sales for August is Peel with 286. The total amount of sales for 2013 between January and August is 17,996.
What does it all mean?
What the new home industry is experiencing is a stabilization. The industry is coming down from a few high record breaking years, and with developers and homebuilders currently battling certain issues, which were discussed at the BILD Live and Interactive Industry Conversation with Minister Jeffrey, it’s natural to hit some record lows.
We are excited to see how the new home industry performs through the traditionally busy fall season!
