February 24, 2005

Stronger numbers expected for February

Condo market boosts GTA new home sales

By Grant Cameron

staff writer

New home sales in the Greater Toronto Area (GTA) were weaker than expected in January but there was a bright spot in the highrise condominium market.

Figures released Monday show there were 2,134 new homes sold in the GTA in January, down 19 per cent from the same month the previous year.

However, sales of highrise condominiums in the GTA were up 31 per cent.

Julie Di Lorenzo, president of the Greater Toronto Home Builders’ Association (GTHBA), said frigid temperatures and a dearth of new project openings resulted in the weaker new home sales.

“Old man winter threw everything at us in January, be it prolonged cold snaps, freezing rain or snowstorms, but it couldn’t deter condo buyers in the city,” Di Lorenzo said.

“As far as the highrise apartment market is concerned, we’re picking up right where we left off last year.”

Di Lorenzo said she expects stronger numbers in February and March in the lowrise market as builders bring forth new products and associated marketing campaigns.

New home sales in January were split two-thirds highrise and one-third low-rise.

The GTA new home price index remained stable at $371,426 for lowrise homes and $270,852 for highrise apartments.

The index is essentially the average asking price of all the remaining new homes and condos currently available for sale.