Toronto Condos Set All-Time Record
New condos selling like hotcakes in Toronto
In a year of firsts for the Toronto new condo market, another record was set in November as sales of new condos exceeded the 20,000 unit threshold for the first time ever, Bob Finnigan, president of the Building Industry and Land Development Association revealed today.
With another 2,243 high-rise condos sold in November (up 35% over November, 2006), new condo sales for the first 11 months of 2007 have reached 22,059 units and BILD is projecting approximately 23,000 sales to year end, smashing the previous record of 17,561 units sold in 2005.
“New condos are basically selling like hotcakes, it’s as simple as that,” said Finnigan. Condo sales are up 32% through the first eleven months of 2007, driving a 14% increase in total new home sales. “The year 2007 will go down as the year of the condo,” Finnigan declared.
“This year also marks the first-time that high-rise housing sales have outstripped low-rise (single-detached, semi-detached, town-home), with an astounding 52% of all sales being high-rise in form,” Finnigan added.
Finnigan attributed the market transformation primarily to the relative affordability of condos compared to low-rise homes. “The RealNet new home price index for new low-rise homes rose 6.8% in the last year and currently sits at $430,000 while the high-rise price index rose 8.6% to $347,000.”The $83,000 price advantage for condominiums goes a long towards explaining the strength of the high-rise housing market,” he said.
With respect to the year over year price increases, Finnigan felt they were healthy enough to reward buyers and investors but modest enough when transaction costs are taken into account to preclude speculation.
With more than 1,500 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.
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