New Home Sales Fall Victim to New Lending Restrictions in October
Stricter lending restrictions have led to a drop in consumer confidence and affordability, causing new home sales to decline for the third consecutive month, the Building Industry and Land Development Association (BILD) reported.
According to RealNet Canada Inc., BILD’s official source of new home market intelligence, 2,792 new homes were sold in October, which is the second-lowest October record. Due to three low sales months in a row, year-to-date sales of 29,322 new homes across the GTA have slipped to 14 per cent below the long-term average – the third-lowest in BILD’s records.
The high-rise sector still holds a prominent share of the market, with 1,914 sales in October 2012 totalling the fifth-highest October on record.
BILD Full Press Release: Click Here
Statistical Backgrounder: Click Here
Year-to-Date Sales Results
- 4th highest YTD High Rise sales on record, +18% higher than the long term average
- 2nd lowest YTD Low Rise sales on record, -37% lower than the long term average
- 3rd lowest Total YTD new home sales, -14% lower than the long term average
RealNet Index Price
- High Rise Index Price +1.9% increase from prior year
- Low Rise Index Price +15.7% increase from prior year
- Remaining High Rise inventory at highest level on record
- Remaining Low Rise inventory at highest level since Jan. 2011 but still very low
- Remaining Total new home inventory within the long term normal range
Source: RealNet Canada Inc.
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