Toronto Home Sales Lowest in Decade as Developers Retrench

Sales of new houses and condominiums in Toronto plunged 26 percent this year to the lowest since 2003 as developers pulled back on projects.

Sales of new low-rise units dropped to 8,878 from January to September from 11,604 in the same period last year and high-rise sales fell to 10,449 compared with 14,399, according to data released today by RealNet Canada Inc., a Toronto-based real estate research firm.

Developers planned to build 20,722 new homes and condos during the first nine months of the year, a 31 percent drop from the same period last year, according to RealNet’s report.

The cost difference between houses and their high-rise counterparts reached a record C$226,016 ($219,454) in the city, with houses forecast to continue losing affordability for many residents.

“They continue to move in opposite directions,” George Carras, president of RealNet, said in a quarterly conference call today.

To contact the reporter on this story: Katia Dmitrieva in Toronto at edmitrieva1@bloomberg.net

To contact the editor responsible for this story: David Scanlan at dscanlan@bloomberg.net

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