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GTA new home sales decline again

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Stricter lending restrictions have led to a drop in consumer confidence and affordability, causing Greater Toronto Area (GTA) new home sales to decline for the third consecutive month, says the Building Industry and Land Development Association (BILD).

TORONTO

Stricter lending restrictions have led to a drop in consumer confidence and affordability, causing Greater Toronto Area (GTA) new home sales to decline for the third consecutive month, says the Building Industry and Land Development Association (BILD).

“In an attempt to cool down the market, the federal government has severely affected the building and development industry in the GTA,” said BILD president and chief executive officer Bryan Tuckey.

According to RealNet Canada Inc., 2,792 new homes were sold in October, which is the second-lowest October record. Due to three consecutive low sales months, year-to-date sales of 29,322 new homes across the GTA have slipped to 14 per cent below the long-term average — the third-lowest in BILD’s records.

The highrise sector still holds a prominent share of the market, with 1,914 sales in October 2012, totaling the fifth-highest October on record. Tuckey said that first-time home buyers are those most affected under the new rules, which have taken a considerable portion of potential purchasers out of the market.

DCN NEWS SERVICES

by Daily Commercial News

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