Think the temperatures fell fast on Friday?
They had nothing on new homes sales in the GTA, which plunged 69 per cent in January compared with the same period last year.
It’s another sign of just how bad things have become with the economy in what was once a red hot industry that showed no signs of slowing down.
The days of bidding wars for homes are all but over, and the number of new homes and condos that changed hands during the first month of the year is staggering: just 599.
That’s only happened once before - back in 1992, just 513 units were sold after the New Year. And it’s a near 70 per cent drop from the previous year. York Region saw an 80 per cent drop while sales in Halton slumped 74 points.
It came before both the U.S. and the Canadian governments launched their so-called stimulus packages, which real estate agents are hoping will at least give some the urge to splurge.
“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,” notes Stephen Dupuis of BILD, an organization that combined the old Toronto Home Builders’ Association with another entity known as Urban Development Institute of Ontario.
Fellow BILD member Joe Vaccaro also pointed to Ottawa and Queen’s Park in the hopes of some reprieve.
“The reality is the federal government has shown some leadership in terms of their package and we hope to see a similar amount of leadership from the provincial government,” he said.
SOURCE: Friday February 27, 2009, CityNews.ca Staff
