Toronto builders call it stability but their latest statistics show condominium sales are down 20.2% this year and now prices are falling.
The Building Industry and Land Development Association says there were 7,047 high-rises purchased over the first four months of the year, down from 8,833 for the same period a year earlier. The average high-rise apartment sold for $431,800 in April, off 3.5% from a year earlier.
The builders say home sales are in line with more typical periods during this boom and comparisons against 2011 are against a record-breaking year.
“We try to use a five-year average,” says Bryan Tuckey, chief executive of BILD, in talking about comparisons. “It’s very positive in that it’s balancing the market. You look at trends and forecasts and actual sales, it’s very seldom a straight line but these [results] are balanced to the way things have been going the past four or five years.”
The exceptions have been 2008 and 2009, years affected by the recession, and the record-breaking pace of 2011, he says. “You have to remember 2011 really was a banner year,” says Mr. Tuckey, adding he doesn’t see downward price pressure because of the demand created from people moving to Toronto.
The drop in sales didn’t come as a huge surprise to CIBC deputy economist Benjamin Tal, who says a 20% drop in sales and 10% decline in prices is what he’s been expecting — something he says will be good for the condo market. “It’s exactly what we expected.” >>>> see full story
Garry Marr May 23, 2012 – 10:03 PM ET Property Post
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What a bad news,this year is been disaster for all business specially in real estate but some are successful also,i thing you should develop some things and search why the sale for it is decrease.
Posted by: Tiina Uusitalo | Monday, July 02, 2012 at 01:13 AM