Strong Sales Growth in May

On June 3rd, Toronto Real Estate President Mark McLean announced that there were 12,870 home sales reported through TREB's MLS system during the month of May. This figure represented a new record for the month of May and a 10.6 per cent increase from May 2015. In May 2015, there were 11,640 home sales.

However, the number of new listings was down from May 2015 by 6.7 per cent. There were a lack of low rise and condominium listings.

Mark McLean stated that there is no shortage of buyers in the market place today as existing homeowners and first-time buyers continue to buy homes.

He also stated that the record number of home sales during the first five months of 2016 is not very surprising but it does hide the larger story in the Greater Toronto Area. He said it masks the lack of listings, which has resulted in strong upward pressure on home prices.

The average selling price for all home types combined increased by 15.7 per cent in May 2016. The MLS Home Price Index Composite Benchmark increased by 15 per cent year-over-year. Low rise homes experienced the strongest growth.

Jason Mercer, TREB's Director of Market Analysis said that competition between buyers of single family homes, semis and townhouses throughout GTA has underpinned the strong annual rates of price growth seen so far this year.

He also said tighter market conditions for the condominium market have resulted in price growth well above the rate of inflation.

The MLS average price for a home last month was $751,908. The MLS Average price of a home in May 2015 was $649.648.

Reference:

Toronto Real Estate Board