Trimart: The Latest Low-Rise News
By Lucas on Oct 15, 2013
Total market low-rise sales year to date as of August 2013 reached 11,716, which is 65% of the annual Trimart forecast. The Total Market Area (TMA) witnessed steady sales gains in August achieving 1,187 sales for the month, marking the fourth highest sales recorded in last six years and a 36.1% increase on year over year sales. Additionally, TMA monthly sales for the last three months have been beating the previous year results.
The new home market will carry on its healthy sales trend with more offerings for first-time buyers, retirees. Sales of higher density urban townhomes and four storey residences continue to capture a larger market share.
Provincially, the Housing starts in the Ontario region were trending at 59,187 residences in August, compared to 58,292 in July. Canada Mortgage and Housing Corporation (CMHC) stated that the trend in total housing starts continued to be relatively stable for a sixth consecutive month.
Nationally, Statistic Canada data showed Canadian employment increasing by 59,200 in August 2013, beating market expectations for a 20,000 increase. Furthermore, the unemployment rate edged downward to 7.1% from 7.2% with the labour force rising 40,900.
Despite a slight increase in borrowing costs during the summer, new home sales in the GTA have remained resilient especially with more builders offering affordable urban townhome product. In summary market conditions are expected to stimulate continued sales growth through the remainder of 2013.
As sales gain in the TMA area and inventory remains strong during this seasonally slower time of the year staying close to the 12,000 level. Overall, the low-rise new home market witnessed more stable results. The TMA shows an average of 2.4 sales per active site with all regions realizing sales gains over the same month last year, the Central (80.0%), the East (15.3%), the North (28.1%), the West (30.4%) and the GTR (83.8%).
In Summary, the market stability, positive housing starts combined with stronger employment plus the increased supply of new low-rise housing will offer greater opportunity for consumers.
Low-rise new home sales for the last three months have been higher than the previous year.
Information provided by Trimart Research Corporation. Prices, bonuses and features subject to change. For more information or to list a new site openings, contact Mark Jin, marketing research manager at mark@trimart.ca
