by Ray Kar, June 11, 2019
The Toronto Real Estate Board (TREB), recently released it’s May sales figures for the GTA. Here are the highlights:
- There were 9,989 sales in May, up 18.9 per cent from the 15-year low from May 2018. However, despite the surge in sales, listings expanded minimally, growing by only 0.8 per cent to 19,386.
- The increase in May follows a 16.8 per cent increase in year-over-year sales in April.
- The surge in buyers, combined with a minimal increase in listings lead to a 3.6 per cent year-over-year increase in the average selling price for all housing types to $838,540, compared with a 1.9 per cent increase in April and 0.5 per cent for March.
- Condos saw the largest price increase at 4.9 per cent to $590,876, while the average detached home prices rose by 1.1 per cent to $1.04 million.
- Despite the price increase in condos, actual growth in sales volumes were limited, increasing by 6.4 per cent year-over-year in May. This compares to a 25.1 per cent increase in detached home sales. Home sales in May, while up from last year, were still off the average of 10,300 for the month for the previous 10 years.
TREB had these concluding takeaways:
- “After a sluggish start to 2019, the second quarter appears to be reflecting a positive shift in consumer sentiment,” TREB president Garry Bhaura said.
- The single-digit price increases are largely sustainable, but if listings continue to lag it could accelerate price growth, the board said.
- “Sales activity continues to be below the longer-term norm,” Bhaura said in a statement.
- Many households aren’t listing their homes because they don’t feel there are housing options available to better meet their needs, the board said.
- Buyers, meanwhile are still coming to terms with more stringent mortgage stress test rules and the lack of listings, it said.
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