Building Industry and Land Development Association | New lending restrictions impact home sales

http://www.newswire.ca/en/story/1057061/new-lending-restrictions-impact-home-sales

New lending restrictions impact home sales

GREATER TORONTO, Oct. 22, 2012 /CNW/ – Sales of new homes and condominiums remained low in September – a result of new lending restrictions introduced in the summer, the Building Industry and Land Development Association (BILD) reported today.

“Changes to mortgage rules by the federal government and a tightening of lending for GTA projects by the banks have diminished consumer confidence and, ultimately, new home sales across the GTA,” explained BILD President and CEO Bryan Tuckey. “It is important to recognize that the industry launched fewer new projects over the summer, which resulted in fewer home sales in September.

According to RealNet Canada Inc., BILD’s official source of new home market intelligence, a total of 2,070 new homes were sold across the GTA, marking the second-lowest total for September in 13 years.

Year-to-date sales of 26,392 homes as of the end of September remained nearly identical to 2010 and down 23 per cent from the record-breaking 2011. High-rise sales remain third-highest on record at 19 per cent above the long-term average. Meanwhile, sales of low-rise homes add up to the second-worst ever recorded, resulting from high prices, a lack of product choice in ground-related housing and constrained land supply.

The RealNet New Home Price Index for a low-rise home rose 15 per cent to $623,245 declined 1 per cent in the high-rise sector to $439,265.

A statistical backgrounder can be found azaretski or Amy Lazar at alazar for more information.

Sept ’12 Low Rise High Rise Total
Region 2010 2011 2012 2010 2011 2012 2010 2011 2012
Durham 177 244 129 6 4 9 183 248 138
Halton 286 185 58 56 53 14 342 238 72
Peel 211 247 459 197 156 63 408 403 522
Toronto 29 44 18 1,253 1,902 536 1,282 1,946 554
York 379 500 419 233 599 365 612 1,099 784
GTA 1,082 1,220 1,083 1,745 2,714 987 2,827 3,934 2,070
Jan-Sept 12,294 13,582 11,823 14,092 20,766 14,569 26,386 34,348 26,392

Source: RealNet Canada Inc.

With more than 1,375 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.

PDF available at: http://stream1.newswire.ca/media/2012/10/22/20121022_C9082_DOC_EN_19633.pdf

SOURCE: Building Industry and Land Development Association

For further information:

Amy Lazar
Manager, Communications
416-391-3452 or 416-543-3903
alazar

Andrei Zaretski
Manager, Marketing & Media Relations
416-391-3450 or 416-843-4898
azaretski

Brandon Lee Cell 416-471-0353, HL/Bayview

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