The sale of new houses, townhomes and semis Canada-wide rose on a year-over-year basis, according to RealNet Canada, BILD’s official source for stats. However, new condo developers only managed to shift 1,251 units – down 46 per cent from the 2,335 in June 2012, and far below the 3,008 for June 2011.
That movement comes as no surprise to industry professionals across the Greater Toronto Area. The sales slip makes last month the lowest June on record, according to the data from RealNet Canada.
“The Toronto condo market is slowing down,” Sheldon Esbin, the managing general partner of commercial lender Romspen
Investment Corp., told MortgageBrokerNews.ca. “The overall economy is good, and we are (doing) a lot of short term lending – but there are not many opportunities in the local condo market.”
The reduced plans for condo development may be welcome news for investors of existing properties as they fear the kind of correction most analysts are downplaying.
Any pullback in construction would lessent the chance of oversaturating the market, sending supply -- even of rental units -- well above demand.
Still, builders are struggling to see any upside to the latest numbers.
“Consumer are currently challenged by a considerable reduction of affordability and choice in the market,” said BILD chief executive Bryan Tuckey in a press release. “This has severely reduced new home sales, particularly in the low-rise market which is experiencing record-high pricing.”
The RealNet New Home Price Index rose 6 per cent from last June, to $638,655. The corresponding high-rise figure fell 0.5 per cent to $430,216.
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