Canada News Wire

Sales of new high-rise condominium suites held firm in June while sales of new low-rise homes retreated due to record-low inventory levels of that product type, the Building Industry and Land Development Association (BILD) announced today.

According to RealNet Canada Inc., BILD’s official, independent source of new home market intelligence, there were 2,920 new homes and condos sold in June 2010. While high-rise condo sales remained right in line with 2009 (and 2008), low-rise (single-detached, semi-detached town-home) sales were off by 46%, resulting in a 26% decrease in total new home sales June/June. “It’s a tale of two markets,” quipped BILD President and CEO Stephen Dupuis.

With the first half of 2010 in the books, the recovery in new home sales is revealed by a 69% increase in total new home sales driven by a dramatic 142% increase in sales of high-rise condominium suites. Even compared with January-June 2008, total new home sales are up a healthy 22%.

“By this point last year, the new housing market was nearing full recovery from the global financial crisis. We’re now comparing apples with apples and on that basis, the new home market appears to be on relatively solid footing at this time,” Dupuis said.

He pointed out that the low-rise market is up 29% on a year-to-date basis, with the June decline reflecting an over-shot last year when sales spiked by 60%, as well as the record low inventory levels of detached, semi-detached and townhomes. “With relatively few new project openings thus far this year, low-rise sales have been naturally constrained,” Dupuis stated.

June new home sales were split 60% high-rise, 40% low-rise and through the first six months of the year 53% high-rise, 47% low-rise.

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