According to RealNet Canada Inc., BILD’s official source of new home market intelligence, there were 3,434 new homes and condos sold in March 2011 and a total of 9,374 units sold from January to March. First quarter sales were down a modest 8.5 per cent year over year, but true to form, the condo sector kept pace with 2010 sales levels.

RealNet Canada President George Carras points out that high-rise sales held pace with Q1/2010, thanks in part to the $75,000 price differential compared with low-rise. The current high-rise price index sits at $446,965 compared with $522,034 for low-rise product. For the record, those index prices are up 6.4 and 6.5 per cent respectively over the last 12 months.

According to Carras, the high cost of low-rise living is directly related to land supply constraints.

"Active new home inventories are well below the long-term average levels,” Carras stated, noting that as of the end of March, there was little more than five months worth of supply of new, low-rise homes available.

“You can’t sell what you don’t have," Carras bluntly added.

Underscoring Carras’ point, it’s very interesting to note that 57 per cent of all new home sales so far this year have been high-rise in form, which is the highest quarterly market share ever recorded.

While new housing demand remains very strong, the interplay of factors like the shortage of low-rise land combined with the new mortgage financing rules is keeping the froth factor at bay, which is not a bad thing in my mind. The healthy supply-demand tension in the system has produced what I’m calling a state of ‘sustainable equilibrium’ in the new housing market.

Stephen Dupuis is the President and CEO of the Building Industry & Land Development Association.