WHAT THE MAY NUMBERS TELL US

There were 11,951 home sales reported through the MLS® last month. That number represents a massive leap of 160 per cent year-over-year (in contrast, there were 4,594 sales in May, 2020). Clearly, last month’s sales are impressive. That said, it’s worth noting that they aren’t as high as those we saw in March.

The average home price was also up. Sitting at $1,108,453, it was 28.4 per cent higher than the average of $863,563 from May of last year. It was an all-time record for the month, which is all the more impressive given that sales have recently cooled slightly.

Needless to say, demand for Toronto homes is still high. TRREB President Lisa Patel ties it to “confidence in economic recovery and low borrowing costs.” That said, Patel also notes that the city’s population hasn’t been growing at its normal rate, which has led to fewer sales than we may have seen otherwise. Fortunately, as vaccination efforts continue, that’s set to change.

When it comes to inventory, the new listings appearing on the market aren’t sufficient to meet current demand. In other words, those looking to buy a home are seeing no shortage of competition. This, in turn, is leading to an increase in selling prices.

A CLOSER LOOK AT THE CONDO MARKET

In May, there were 1,881 condo sales in Toronto, representing a whopping 159 per cent jump year-over-year. Meanwhile, the average price was $716,976, rising 6.3 per cent from the same month of last year.

There’s no denying that the pandemic had a negative impact on condo sales and prices. Units flooded the market as buyers moved to the suburbs, where they could find more square footage and outdoor space. Fortunately, the condo market bounced back in the first quarter—and interest in this ever-popular housing type remains strong.

TRREB Chief Market Analyst Jason Mercer has noted that the competition and tight market conditions we’re seeing are extending to the condo market. If you’re thinking of purchasing a unit in the near future, that’s worth keeping in mind. The good news? An agent who knows the local landscape can help by providing a competitive advantage.

READY TO TAKE ACTION?

If you’re curious about what the latest real estate numbers mean for you, working with the right professional is key. Whether you’re buying or selling, I can provide the insight you need to take your next step. Get in touch to learn what’s happening in the market—and what it all means for you.