New home sales skyrocket once again

I've been in this industry for over 20 years  which may not make me an expert but at least I've seen  "the cycle" more than once. And given everything I've seen, it was painful but not difficult to predict at the beginning of this year that sales would be half of what they were in 2008. Of course, even the experts didn't foresee that sales this year would be more than double the predicted levels - yes, you read that right.

The month of November has been most kind to the new construction industry, with an astounding 156 per cent increase in new homes sold when compared to this time in 2008. Both the low- and high-rise sectors crushed last year's results, giving the year-to-date total an impressive 13 per cent lead over the previous annum.

Breaking it down

The 905 area continued to impress as York Region tripled 2008's results in the low-rise sector. Halton came in as runner-up with a 215 per cent increase, and overall, all but one region in the GTA exceeded last year's numbers by more than double, with Durham Region falling just three sales short of a triple-digit raise.

Remember when high-rise construction was lagging behind its counterpart and many wondered how long it would take for condominium demand to rebound and once again carry the market? Well, that time is now as new high-rise sales hold 53 per cent of the market.

When I see 174 new high-rise units sold in York Region in the past month after a mere 21 last November, I see a market that's steadily returning to what it once was, and it doesn't stop there. In Peel Region, 139 high-risers were scooped up, resulting in a 504 per cent increase. How's that for a recovery?

With both sectors seeing significant improvement over last year's figures, I am delighted to see that homebuyers are taking full advantage of the lower prices and mortgage rates offered by builders and banks today. As of this writing, the GTA has already seen more homes sold this year than all of 2008, and there is still a full month of numbers left to calculate!

'Tis the season

With today being what it is, I find it appropriate that I drift away from my usual topic of discussion for just a little bit, and wish all of you Toronto Sun readers a festive holiday season as we wrap up 2009. Around the same time last year, there wasn't a lot to be festive about if you work in the construction industry, but this time around, the mood is a lot more positive.

As of June, we have seen increased sales in new home construction, and low-rise starts for the month of November have reached their highest level this year.

With a stable market forecasted in 2010, I think it's safe to say that we are moving forward, and extend an invite to you to join us as we leap into a new year with new opportunities and possibilities!

Happy Holidays!