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Toronto's new home sales drop 69%
New home sales slump continues in January
With just 599 new homes and condominiums sold across the Greater Toronto Area in January, 2009, the sharp downward trend exhibited during the last quarter of 2008 has continued into the New Year. New home sales were down 69 per cent in January compared with the same month the previous year. A review of the records reveals that January sales have only been less than 599 units once (in 1992 - 513 units) since the database was established in 1981.
"The very slow start to the New Year did not come as a surprise given the obvious trend-line and the macro-economic forces at play," said BILD President and CEO Stephen Dupuis, "but that doesn't mean we're not concerned about it.
"During January, buyers had yet to see the U.S. and Canadian responses to the global economic crisis. The spring housing market will be unfolding in the context of the new Obama administration in the U.S. and the massive fiscal stimulus packages unleashed on either side of the border and time will tell how homebuyers respond to these developments," Dupuis added.
Mr. Dupuis expressed cautious optimism that the federal stimulus package combined with further enticements expected in the pending provincial budget together with the boost from 50-year low interest rates will have a positive impact on the market so long as the measures are not undermined by contradictory government policies that would increase the cost of doing business.
Dupuis cited the provincial government's recent imposition of mandatory WSIB coverage as an example of an ill-timed initiative and warned that harmonization of the GST and PST would devastate the already moribund housing sector. "There's no point in putting the gas pedal to the metal from a stimulus standpoint while braking equally hard with the other foot, but that's what harmonization amounts to," he said.
As an example of a more enlightened approach, Dupuis complimented Toronto Mayor David Miller and City Council on their decision to hold off any development charges increases for two years or more depending on the health of the industry. "The truth is that we need rollbacks in development charges, but the City of Toronto nevertheless deserves credit for deferring the increases to protect and promote jobs and investment in the City," Dupuis concluded.
February 27, 2009 | Permalink
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Comments
How's a guy get in touch with you about sharing links? I thought I could contribute as it relates to commercial space in Toronto... and this was the most appropriate post to comment on.
Posted by: Chris Fyvie | Mar 4, 2009 9:02:41 AM
Go ahead. Remove the transfer tax. I'm still not going to buy a condo. I'm renting and I'm going to continue renting. Who needs the headache?
Posted by: Bill Braskey | Mar 2, 2009 8:59:38 AM
We are dealing wiht many of the same issues here in Atlanta GA. Condos seem to be hardest hit. Great post.
Posted by: Atlanta real estate | Mar 1, 2009 10:37:49 AM
Can we look back and possbly say David Miller got a way too zealous on chargin people for buying houses in the GTA??? Seems to me like maybe that was one of the owrost timed new taxes for potential new home buyers that has ever lived...But yeah, thanks for he $750 rebate....whoppdy do...Charge first time home buyers (whom we know are the greatest people affected by this tax) extra money for becoming an adult...Thanks again and thanks for not seeing the big picture once again...
Posted by: Steve King | Feb 28, 2009 11:34:39 AM
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