Study Real Estate

The development industry says new home sales in the GTA are at their highest level in more than two years.

The Building Industry and Land Development Association (BILD) said Friday that there were 4,150 sales in October, the best results since July 2007.

Sales of homes, primarily in the 905 area, "were up an astounding 173 per cent," it said Friday.

High-rise condo sales, primarily in Toronto, "rose by an impressive 77 per cent," BILD said, citing RealNet Canada Inc. as the data source.

"The turnaround in new home sales has been nothing short of remarkable, with homebuyers taking advantage of ultra-low interest rates and intense competition among builders," Stephen Dupuis, BILD's president and CEO, said in a statement.

"The low-rise new housing market picked-up in late Spring while the high-rise condo market has sprung back this fall, accounting for 60 per cent of total new home sales in October," he said.

"With year-to-date sales now running 2.5 per cent ahead of last year and a decidedly up-note in the market, it looks like total new home sales in 2009 will end up far higher than anyone could have anticipated earlier in the year."

In Toronto, real estate agent Krysten Fleischhacker of Coldwell Banker told CTV Toronto that the condo business has been crazy.

"There's so much competition. There's been multiple offers on every unit that's under $400,000, it seems -- even higher," she said.

One issue is that inventory is low. Fleischhacker said it's so tough to get into the resale market, many are finding better deals in new condos.

"They do offer incentives, like cash-back on closing or up to $5,000 in upgrades, which could include laminate floors throughout ...," she said.

So long as interest rates and inventory stays low, Fleischhacker said it's likely to remain a seller's market.

CTV Toronto's Paul Bliss said some agents are lining up to buying units in new buildings before turning around and selling them again.

With a report from CTV Toronto's Paul Bliss