The Toronto Regional Real Estate Board (TRREB) released their Market Watch report for May 2023 today. The report shows another month of the same trends we saw in April. Namely, lack of supply and increase in prices.
On a year-over-year basis new listings were down 18.7% in May and the number of sales were up by 24.7%. In short, sales as a share of new listings were up dramatically compared to May 2022.
As has been the trend for the past few months, this has led to an increase of competition between buyers. This increase in competition in turn has also led to an increase in the average selling price. On a seasonally adjusted monthly basis the average price of a GTA home rose to $1,196,101, which is 3.5% higher than it was in April 2023.
There are a few reasons we are seeing this upward trend in May. According to TRREB Chief Market Analyst Jason Mercer, “The demand for ownership housing has picked up markedly in recent months. Many homebuyers have recalibrated their housing needs in the face of higher borrowing costs and are moving back into the market. In addition, strong rent growth and record population growth on the back of immigration has also supported increased home sales. The supply of listings hasn’t kept up with sales, so we have seen upward pressure on selling prices during the spring.”
If you’d like more information about what the May 2023 report means for your home or are considering purchasing a new one, please contact me. I’m always happy to help!