Low-rise, high-rise and total new home sales in the Greater Toronto Area were all up year over year in May, with high-rise condo sales racing ahead with a 50 per cent increase.

According to RealNet Canada Inc., there were 4,289 new homes and condominium suites sold in the GTA in May, with sales of low-rise (single, semi-detached and town-homes) up 24 per cent, high-rise up a whopping 50 per cent and total new home sales up a solid 37 per cent.

On a year to date basis, total new home sales in the GTA are running 12 per cent ahead of January-May 2010, driven by a 29 per cent surge in high-rise sales.

The low-rise sector is running six per cent behind last year through May.

It was the best May ever for new condominium sales, following right on the heels of a record-breaking April.
Fifty-seven per cent of all new home sales in the GTA in May were high-rise condominium suites which is consistent with the year to date average of 59 per cent, both of which are all-time high market share ratios.

Outside the 416 area code, high-rise sales in Peel Region were nearly four times higher than last May, whereas in April, Halton and York Regions lead the 905 area.

The primary factors driving the market appear to be relative affordability (compared with low-rise here and high-rise globally), low interest rates and, to give the builders their due, some great building and suite designs in some great locations.

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