Toronto's housing market showed signs of rebounding in May, with a 20% increase in home sales compared to April and a 25% increase compared to the previous year. The desire for homeownership has surged as borrowing costs increased, prompting potential buyers to re-evaluate their housing needs and return to the market. However, sellers are holding out for higher prices, leading to a slower pace of new listings and an imbalance between supply and demand. The average selling price of a home in May was $1,196,101, slightly higher than April but 1% lower than the same period last year.
Toronto's housing market showed signs of rebounding last month, with stronger home sales and prices approaching historic highs. According to the Toronto Regional Real Estate Board (TRREB), house sales in May reached 9,012, representing a 20% increase from April and a 25% increase from the previous year.
TRREB's chief market analyst, Jason Mercer, suggests that the desire for homeownership has surged in recent months. After a series of rapid interest rate hikes, many potential buyers had withdrawn from the market. However, with increasing borrowing costs, buyers have re-evaluated their housing needs and are now returning to the market. The rise in house sales can be attributed to escalating rental prices and significant population growth driven by immigration.
Despite the growing demand, sellers seem to be holding out for higher prices, resulting in a slower pace of new listings compared to the rate at which buyers are returning. The number of new listings in May was considerably lower than in the same month of the previous year, indicating an imbalance between supply and demand. In total, there were 15,194 new listings, which is approximately 19% less than in May 2022.
In May, the average selling price of a home was $1,196,101, slightly higher than April but 1% lower than in May 2022. The composite benchmark price, adjusted for seasonal factors, increased by 3.2% compared to April but decreased by 6.9% on a year-over-year basis in May.
Breaking down the market, townhome prices saw an average increase of 2.5% to $1,003,152 between May 2022 and May 2023. The average price of a detached home increased by less than 1% to $1,556,566. Semi-detached home prices remained relatively stable at $1,198,185, while condo prices experienced a decline of 3% to $748,483.
Comparing average home prices, this year's average is approximately $1,135,595, slightly lower than last year's $1,189,730 but higher than the average of $1,095,475 in 2021.
Advertisement
Facebook
Whatsapp
