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Every news release brings another indication of the shrinking Canadian real estate market.

This time out it’s the Greater Toronto Area where new home sales in August were down 45% from a year ago. That’s the bad news. The good news is new home sales in the GTA are still 28% ahead of last year’s pace after eight months.

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“Last year started slow and gathered steam all year long,” said Stephen Dupuis, chief executive of the Building Industry & Land Development Association. “This year, we had a very fast start as buyers rushed to beat the HST, potential mortgage rate hikes and the new federal mortgage financing rules, and then lost steam.”

High-rise sales continue to lag compared to last year. August sales were off 33% from a year ago but still remain 78% year-to-date when compared to 2009. Condominiums continue to drive the GTA’s housing market with 48% of all new homes sales in August falling into that category.