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Hamilton Spectator
3 days ago
- Business
- Hamilton Spectator
Toronto-area new home sales are worse than during the 1990s housing market crash
New home sales in the Toronto area marked a seventh consecutive month of record all-time lows, eclipsing the 1990s downturn when the housing market crashed. During the 1990s housing crash — which lasted roughly from 1989 to 1996 — at the bottom of the market there were six consecutive months of record low sales, and sales were around double what they are today, according to the Wednesday report from the Building Industry and Land Development Association's (BILD), which called on the federal government to expand its GST relief to all new home purchasers. There were 310 new home sales in April, down 72 per cent from April 2024 and 89 per cent below the 10-year average. Historically, new home sales for a typical April in the GTA would be 2,750 units based on the previous 10-year average. 'April 2025 new home sales across the GTA have extended the slowest period of sales on record,' said Edward Jegg, research manager at Altus Group, BILD's source for new home market data. 'Buyers crave predictability and the swirling uncertainty around the impact of possible tariffs is depriving would-be purchasers of the confidence they need to move ahead.' Broken out by housing type, condos performed the worst with 105 units sold in April, down 80 per cent from April 2024 and 94 per cent below the 10-year average. Condos include units in low, medium and highrise buildings. There were 205 single-family home sales in April, down 66 per cent from April 2024 and 77 per cent below the 10-year average. Single-family homes include detached, linked and semi-detached houses and townhouses. The benchmark price for new condos was $1.019 million — down 3.6 per cent over the last 12 months; while the benchmark price for new single-family homes was $1.53 million, down 5.4 per cent over the last 12 months. Total new home remaining inventory decreased slightly compared to the previous month. The inventory level — the time it would take to sell inventory on the market based on current demand — is 15 months. A healthy market level is around nine to 12 months. 'Because of the time lag between sales, starts and then finally adding new home supply to existing housing stock, the public is insulated at present from the magnitude of what is unfolding in the GTA market,' said Justin Sherwood, senior vice-president of communications, research, and stakeholder relations at BILD. 'The new housing industry is decelerating quickly and a massive supply deficit in the 2027 to 2029 period is taking shape.' The number of completed condo units in the Greater Toronto and Hamilton Area will plummet after 2025 , which is set to achieve the highest number of completions at 30,793, according to real estate research firm Urbanation. But in 2028 the number of forecasted completions is 9,561. BILD argues to build more housing, the federal government must expand its GST cut for all home purchasers, not just first-time homebuyers. On Tuesday, the Liberals tabled legislation for a GST cut limited to new homes under $1 million for only first-time buyers (saving up to $50,000), while lowering the rate for first-time buyers of homes that cost between $1 million and $1.5 million. 'Yesterday the federal government tabled its proposed measures to provide GST(HST) relief to first-time new home buyers. Unfortunately, this limitation to first-time buyers only will have a very small impact, as a very few new home buyers are first time buyers. It will not substantially help address affordability, nor will it help significantly stimulate sales and construction,' Sherwood said.
Toronto Star
3 days ago
- Business
- Toronto Star
Building Industry Leaders Issue an Open Letter to Prime Minister Carney on GST Rebate Commitments
Toronto, May 28, 2025 (GLOBE NEWSWIRE) — Greater Toronto Area, May 28, 2025 – Yesterday at 2:30PM EST, key leaders from the building and development industry issued an open letter to Prime Minister Carney regarding the urgent need for federal action on the GST rebate and Canada's housing crisis broadly. The letter calls on the federal government to move with speed to combat market uncertainty and asks that: The GST rebate thresholds are adequate to deal with high value jurisdictions like the Greater Toronto Area and the Lower Mainland of BC; The GST exemption apply to all new home purchasers, not simply first-time buyers; The government update the existing GST rebate mechanism and simply adjust the dollar thresholds rather than come up with a completely new framework; and The government commits to regularly index the GST rebate thresholds. Later that afternoon, the federal government tabled a proposal to introduce a new GST rebate for first-time home buyers. While we are pleased that the federal government is moving quickly, the measures will provide limited, if any, benefit for buyers in large urban centres such as the GTA and Lower Mainland BC. We strongly encourage the government to incorporate the recommendations in the open letter, particularly the recommendation to retain the existing GST New Housing Rebate structure and eligibility criteria without adding a first-time homebuyer restriction. ARTICLE CONTINUES BELOW The letter was signed by leaders from: BILD (Building Industry and Land Development Association), Canmore Community Housing, Canadian Home Builders' Association, Habitat For Humanity Canada, Missing Middle Initiative, Options for Homes, Polygon Homes Ltd. and Wesgroup Properties. Read the entire letter: Dear Prime Minister Carney, We want to congratulate you on your election as Prime Minister of Canada and on the appointment of your new Cabinet. We are looking forward to working with your government towards the common goal of increasing annual housing starts to 500,000 units and supporting a sustainable housing market. We write to you today to propose that the federal government immediately follow through with a revised version of the campaign promise of enhancing the existing GST new housing rebate, which was referenced as a priority in today's Speech from the Throne. An enhanced rebate would help lower the cost of ownership, increase housing supply, enable residents to live in right-sized homes, and move the nation closer to its goal of starting construction on 500,000 new homes annually. Canadians welcomed and embraced the focus on housing affordability during the election in the interest of housing availability, affordability, and job creation. Yet, housing starts for owner-oriented homes continue to fall. In 2024, Canada recorded just 132,000 such starts, the second-lowest since 2001, and down over 20% from 2021. The outlook is worsening: first-quarter 2025 starts are down over 25% year-over-year, hitting their lowest point since the Financial Crisis. Pre-construction condo sales have nearly disappeared in Greater Vancouver and Greater Toronto, indicating further declines ahead. Canada faces a cost-of-delivery crisis in new home construction. The Liberal platform rightly identified 'lowering the cost of homebuilding' as a key priority. While many cost drivers lie outside federal control, the GST is a notable exception. Applied only to new homes, the GST undermines affordability. When introduced in 1991, the federal government provided a rebate that covered over 95% of new homes for all new home buyers. But because the thresholds were never indexed to inflation, most new homes no longer qualify, especially in high-cost regions, where affordability is most strained. This impacts not only new home prices but also resale and rental markets by reducing housing options. There is an opportunity and need to ensure the GST rebate will address the affordability crisis for all buyers, not just those purchasing new homes for the first time. If an adjustment to GST exemptions applies only to first-time buyers, it excludes key groups like seniors looking to downsize, transactions that free up family-sized homes. Perversely, it could reduce the construction of new affordable supply, as potential first-time homebuyers may be reluctant to use their eligibility on a smaller unit, instead saving it up for a more expensive, family-sized home down the road. This also reduces the incentive for those who purchase pre-construction condos, which are essential for developers to move forward with projects and provide much-needed privately-owned rental homes at completion. We urge your government to redesign its proposed enhanced GST new housing rebate with four key principles in mind: speed, simplicity, supply, and sufficiency. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW Speed: The rebate should be implemented immediately to counter the ongoing decline in non-rental housing starts and prevent buyers from delaying purchases. We urge you to announce an effective date, as soon as possible, with the rebate applied retroactively to that date. Simplicity: The design should align with existing business practices and avoid complex, time-consuming changes for governments and industry. Supply: New condo supply will not be created in some regions until the market absorbs the existing inventory of under-construction and complete but unsold units. Sufficiency: The rebate must be large enough to support the federal goal of 500,000 housing starts per year, with thresholds high enough to ensure no region is excluded. With speed, simplicity, supply, and sufficiency in mind, we propose the following recommendations to the federal government: Implement immediate reforms to the existing GST/New Housing Rebate. Retain the current structure and eligibility criteria, without adding a first-time homebuyer restriction. Raise the lower threshold from $350,000 to $1,000,000 and the upper threshold from $450,000 to $1,500,000. Increase the maximum rebate from 36% to 100% for homes where possession and ownership transfer on or after July 1, 2025. The rebate must apply to homes that are currently under construction and those that are complete and unsold, to ensure the next round of construction can occur as quickly as possible. Commit to further enhancements. Recognize that even these thresholds may not fully address affordability in high-cost regions or future price growth. Implement threshold increases now and launch consultations on inflation indexing and regional adjustments. Encourage provincial action. Urge provinces to adopt or expand similar rebates, including relief from sales taxes and land transfer taxes on new homes. GST relief was a central part of the Liberal platform, your post-election commitments and addressing the housing affordability crisis facing our country. Acting quickly will complement your middle-class tax cut and show your government's practical, results-driven approach to one of Canada's most urgent challenges. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW We welcome the opportunity to support your team on implementation and look forward to working together to increase housing starts and improve affordability nationwide. We would request the opportunity to meet with you at your earliest convenience to further discuss the impact of these proposals and the need to act with urgency. Sincerely, Dave Wilkes, President & CEO, Building Industry and Land Development Association Kristopher Mathieu, AT., PMP., Executive Director, Canmore Community Housing Kevin Lee, CEO, Canadian Home Builders' Association Pedro Barata, President & CEO, Habitat For Humanity Canada Dr. Mike Moffatt, Founding Director, Missing Middle Initiative Daniel Ger, CEO, Options for Homes Robert Bruno, Executive Vice President, Polygon Homes Ltd. Beau Jarvis, President & CEO, Wesgroup Properties -30- With more than 1,000 member companies, BILD is the voice of the home building, residential and non-residential land development and professional renovation industries in the Greater Toronto Area. The building and renovation industry provides 256,000 jobs in the region and $39.3 billion in investment value. BILD is affiliated with the Ontario and Canadian Home Builders' Associations. For additional information or to schedule an interview, contact Janis McCulloch at jmcculloch@ (416-617-7994)
Hamilton Spectator
4 days ago
- Business
- Hamilton Spectator
2025 BILD Awards celebrate home building excellence in the GTA
Toronto, May 30, 2025 (GLOBE NEWSWIRE) — Greater Toronto Area, May 30, 2025 – The Building Industry and Land Development Association (BILD) recognized excellence in the design, construction, marketing and sales of new homes in the Greater Toronto Area (GTA) at its 2025 BILD Awards Gala, held on May 29. BILD presented 50 awards in the categories of architecture, design, marketing, people and sales, and in the prestigious project and builder categories. A group of 51 expert judges from across North America determined the winners from over 700 submitted entries. 'The BILD Awards is one of the largest and most prestigious awards programs of its kind in North America,' said Dave Wilkes, BILD President & CEO. 'This year's winners truly exemplify outstanding innovation and showcase the excellence of the building industry in the Greater Toronto Area.' Howard Sokolowski, Founder and CEO of Metropia, received BILD's Lifetime Achievement Award. It is the highest honour BILD can present to a member, recognizing those who have dedicated a lifetime to the association and the industry and demonstrated significant leadership and commitment to the greater good. Mr. Sokolowski has been at the forefront of Canada's development industry for over 30 years. One of the most trusted and influential industry leaders, he is renowned for building iconic communities that residents are proud to call home. The Daniels Corporation was named Home Builder of the Year, Mid/High-Rise, while Great Gulf received the title of Home Builder of the Year, Low-Rise. The Home Builder of the Year categories recognize builders who set the standard for the rest of the industry through their professionalism and dedication to excellence. A key component of the judging process is a customer satisfaction survey, which ensures that the end user's experience is factored into the award criteria. The winners of the top project and builder categories include: In addition, Brixen Developments' Exhale Residences designed by Architecture Unfolded received the People's Choice Award, which is voted by the public. For a full list of BILD Awards winners, visit . . With more than 1,000 member companies, BILD is the voice of the home building, residential and non-residential land development and professional renovation industries in the Greater Toronto Area. The building and renovation industry provides 256,000 jobs in the region and $39.3 billion in investment value. BILD is affiliated with the Ontario and Canadian Home Builders' Associations. -30- For additional information or to schedule an interview, contact Janis McCulloch at jmcculloch@ or 416-617-7994.
Toronto Star
6 days ago
- Business
- Toronto Star
Toronto-area new home sales are worse than during the 1990s housing market crash
New home sales in the Toronto area marked a seventh consecutive month of record all-time lows, eclipsing the 1990s downturn when the housing market crashed. During the 1990s housing crash — which lasted roughly from 1989 to 1996 — at the bottom of the market there were six consecutive months of record low sales, and sales were around double what they are today, according to the Wednesday report from the Building Industry and Land Development Association's (BILD), which called on the federal government to expand its GST relief to all new home purchasers.
Calgary Herald
16-05-2025
- Business
- Calgary Herald
Breath of fresh air: home builders deliver on indoor-outdoor spaces
Article content An airy and open indoor-outdoor floor plan with ample outdoor space seems to be the trend for 2025, say Calgary's top single-family builders. Article content Article content 'There has really been a shift towards more intimate indoor-outdoor spaces, especially in the inner-city where people are essentially laminated to their neighbour,' says Fatima Nasser, president and co-founder with her husband, Moe Abbdullah, of Urban Indigo Fine Homes. 'We've also noticed that there has been a huge demand for detached single-family homes with larger backyards.' Article content Article content The team at Jayman Built would agree. Stephanie Myers, vice-president single family at Jayman Built, says that Jayman's designs are really focusing on family-friendly living and third-floor development with outdoor space also in big demand. She notes that the Calgary market has balanced out over the past six months, which bodes well for sussing out the perfect home and lot. Article content Article content 'We're seeing healthy sales numbers in the first quarter. So, there's a lot of opportunity for those looking to get into the market and given the balance market, it is also a good time for those looking to make a move up,' says Myers. Article content Both Urban Indigo Fine Homes and Jayman Built recently won top accolades at the 2024 Building Industry and Land Development Association Calgary Region Awards, each picking up the coveted Grand Award for Single Family Builder of the Year. Urban Indigo stepped up to take Small Volume Single Family Builder of the Year, while Jayman Built earned Large Volume Single Family Builder of the Year. A Grand Award is a top-achiever award of distinction presented in seven categories. Jayman Built and Urban Indigo Fine Homes have each worn the crown multiple times. Article content Article content 'We're really proud to be recognized,' says Jayman's Myers. 'The commitment that the Jayman team has made with floor plans and model evolution, show home designs, sales initiatives and overall customer experience has pulled industry recognition and led to some very happy homeowners. Winning the Builder of the Year award is an honour. It recognizes the dedication, innovation and craftsmanship that we bring to every home.' Article content Jayman Built not only received a Grand Award this year, but also collected 17 finalist nods and nine additional category wins, including Best New Single Family Home Award for its Bentley 24-2 design in the category $641,000 to $690,000. With its attention to detail and practical and elegant floor plan, the Bentley 24-2, a four-bedroom, 2,411-sq.-ft., three-storey home, features multiple floor plan options including a main floor bedroom with ensuite, expanded dining room or kitchen, and a flex space or home office. One of the model's most popular features is the third-floor loft space with a large bedroom, three-piece bathroom, large bonus room and an ample outdoor terrace. Additionally, the lower-level can be developed into a secondary suite with a separate entrance, a feature that Myers says is also at the top of many buyers' wish lists.
