New Home Sales in Greater Toronto Clock Their Worst April
Home Sales in Greater Toronto is ringing up superlatives, which is just of different kind these days.
This city has gone from some of the earning descriptions like “high home sales” few years ago to the superlatives like “biggest drop in home price in 17 years” in the recent months.
Now according to a new data which was released from the Building Industry and Land Development Association, this region has clocked slowest pace of sale of new homes for April during this century, and possibly slowest pace in more than 20 years.
Greater Toronto saw around 1,727 sales of newly-constructed homes of all different types which were recorded in April, it is down by 65% from same month earlier a year, when housing frenzy of city was at peak.
But this is not the comparison to the peak of real estate market which makes home sale numbers to look bad. Tally in April may well which is the lowest number of sales of new home for the month as this region has been seen since year 1995-96.
At this time, Housing Market of Toronto was in the midst of prolonged slump which was caused by burst in the housing bubble in early 1990s.
It’s not clear that whether GTA has hit this grim milestone, BILD’s home sales data goes back to 2000, and earlier data isn’t comparable. For an instance, boundaries of Greater Toronto were different then.
Patricia Arsenault, executive vice-president at Altus Group said that as home-buying intentions remain too strong, it is a combination of number of challenges that keeps number of interested buyers out of new housing market.
Patricia also said that first time home buyers need to save qualify for mortgage, and potential home buyers are facing with a huge gap as comparatively to a year ago between the price they they can get for their existing homes and price of newly-constructed homes.