Toronto Home Prices Soar to Record $1.1 Million in May Despite Lower Sales
Home sales across Canada’s largest real estate market remained elevated last month, but failed to reach a similar peak noted in March of this year. However, amid tightening inventory levels, home prices continued to surge, setting yet another record.
According to data published by the Toronto Regional Real Estate Board (TRREB), there were a total of 11,951 homes that traded hands in May in the Greater Toronto Area, which is more than double the amount during the same period a year ago. Last month’s sales were also above the average 2010 to 2019 average sales levels, as May is typically the strongest time for real estate activity in a given year. However, the latest 2021 figures failed to follow the trend, as May sales were below the record 15,646 transactions reported in March.
“There has been a strong demand for ownership housing in parts of the GTA for both ground-oriented home types and condominium apartments. This was fueled by confidence in economic recovery and low borrowing costs. However, in the absence of a normal pace of population growth, we saw a pullback in sales over the past two months relative to the March peak,” explained TREEB president Lisa Patel.
In the meantime, a declining supply has forced potential homebuyers to compete for homes, creating added pressure on already-elevated prices. Although sales numbers have trended lower relative to their March 2021 peak, so have active listings, creating widespread competition across all housing types. The average selling price has soared 28.4% higher from May 2020, reaching a new record of $1,108,453.
Information for this briefing was found via TRREB. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
