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Sales of new homes in the GTA saw a modest increase in September, but year-to-date figures are still the lowest in 10 years, the Building Industry and Land Development Association says.

Read: Majority of homeowners plan renovations

Total new home sales in September were up 4% over September 2012, for a total of 19,327 sales so far this year.  That’s 44% below the 10-year average, according to data from RealNet Canada Inc., which provides housing date to BILD. And at the end of Q3 sales of new single, semi and town homes sit at 63% below the 10-year average.

There’s much less land in supply for housing, resulting in near record-low inventories and near record-high pricing. This is contributing to the decline in sales, says BILD.

“Constrained land supply has caused land prices to increase dramatically over the past decade, particularly in the low- and medium-density sectors where it has grown as much as 237%,” said BILD President and CEO Bryan Tuckey. “The economic effects will likely be felt within a few years.”

Read: Refinancing requests outpace new home purchases

The RealNet New Home Price Index showed a 6% price increase in the low-rise sector over September 2012, bringing the price to $658,869. The price per square foot in the high-rise sector grew modestly, but unit pricing declined by 1% to $432,853 as unit size decreased by 2%.

Read: Homeowners eye green renos

Click here to see a video analysis of September home sales.

Originally published on Advisor.ca
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MONEYINSIDE

This debt problem will not go away, http://www.moneyinside.ca/forum/viewtopic.php?f=4&t=140 The situation is dire, more and more people realize that real estate bubble in Canada will pop one day

Wednesday, October 23 @ 3:05 am //////

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