Condo craze continues with 41 per cent increase

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TORONTO, July 19 /CNW/ - There were more new high-rise condominium suites
sold in the Greater Toronto Area in June than ever before as condo sales
smashed the all-time record for market share, Desi Auciello, president of the
Greater Toronto Home Builders' Association, said today.
    "With an all-time high 2,397 new high-rise condos sold in June, home
buyers were snapping up a new condo every four minutes the sales offices were
open," said Auciello.
    High-rise unit sales were up a whopping 41 per cent while total new home
sales were up just two per cent as a result of an offsetting 28 per cent
decline in low-rise (single-detached, semi-detached and townhome) sales.
    According to RealNet Canada Inc., the association's independent source of
new home market information, an astounding six out of every ten (60 per cent)
new homes sold in June were high-rise suites.
    "Frankly, we never thought we'd see the day when low-rise product would
represent the minority of our sales, particularly to this extent," Auciello
stated. The previous high-rise market share peak was 46 per cent while the
annual average (2005) is 42 per cent.
    Auciello attributed the continuing condo craze to affordability and
choice. "As house prices rise, home buyers seeking a toehold in the market are
obviously turning in increasing numbers to the condo market," said Auciello,
noting that the RealNet new home price index for high-rise condos ($314,370)
is $80,000 less than for low-rise homes ($393,398).

    <<
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                    Low Rise             High Rise               Total
               June   June    %      June   June    %      June   June    %
    Region     2005   2006 Change    2005   2006 Change    2005   2006 Change
    -------------------------------------------------------------------------
    Durham      542    240   -56%      31     81   161%     573    321   -44%
    Halton      222    344    55%      45      7   -84%     267    351    31%
    Peel        698    468   -33%     110    474   331%     808    942    17%
    Toronto     144     85   -41%   1,145  1,652    44%   1,289  1,737    35%
    York        636    486   -24%     375    183   -51%   1,011    669   -34%
    GTA       2,242  1,623   -28%   1,706  2,397    41%   3,948  4,020     2%
    -------------------------------------------------------------------------
                                                   Source: RealNet Canada Inc
    -------------------------------------------------------------------------
    >>

    The index is essentially the average asking price of all the remaining
new homes and condos currently available for sale, as calculated by RealNet
Canada Inc.
    The new home price index is based on currently available new home
offerings, weighted by remaining inventory, for projects of 15 or more units,
excluding ultra-luxury product across the GTA.
    With the first six months of the year in the books, total new home sales
of 21,866 units are down five per cent compared with the first half of 2005.
High-rise sales are running two per cent ahead of last year while low-rise
sales have declined by 10 per cent.
    The top five municipalities in the GTA for June were Toronto, 1737;
Mississauga, 585; Brampton, 355; Markham, 262 and Vaughan, 213.

    With more than 1,400 members, the GTHBA is the voice of the residential
construction industry in the Greater Toronto Area. Established in 1921, the
association is comprised of land developers, home builders, professional
renovation contractors, sub-contractors, suppliers, service, professional and
financial firms. We are proudly affiliated with the Ontario and Canadian Home
Builders' Associations.