The Toronto Regional Real Estate Board (TRREB) has released its housing figures for May. With 7,013 home sales reported through the local MLS, transactions decreased 21.7% from a year earlier. This marks a third consecutive month of cooling activity as many buyers sit on the sidelines in anticipation of future rate relief.
New listings and inventory continue to rise, offering greater selection to buyers, while creating more balanced market conditions for sellers and buyers. The 18,612 new listings are a 21.1% increase over last May, with active listings rising 83.3% year-over-year to 21,760. Inventory now sits at 3.10-months.
The rise in inventory worked to push prices down from a year ago. The average selling price of $1,165,691 represents a 2.5% decrease from 2023. The MLS Home Price Index (HPI) Composite Benchmark, which serves as a measure of inflation in the market, was down 3.5% year-over-year (-2.81% in Toronto).
The average May sale took place in 19 days on the market at 102% of the listing price, with 68.38% of all transactions sitting between $600,000 and $1,500,000. Sales of homes over $2,000,000 accounted for 8.46% of the sales mix, up from 7.93% in April, and representing its highest share of total monthly sales since May 2022.
Looking at prices by housing type: Detached homes sold for an average of $1,506,675, representing a 3.2% decrease from last May, and a month-over-month decrease of 0.62%. The average price for semi-detached homes was $1,173,819 (-2.0%/+3.0%), townhomes sold on average for $947,158 (-5.6%/-0.3%), and the average price of condos was $730,815 (-2.4%/+0.04%).
With summer approaching, many buyers are still waiting for clear signs of declining mortgage rates, while sellers begin listing their properties in anticipation of higher demand. As borrowing costs decrease over the next 18 months, more buyers are expected to enter the market, including many first-time buyers.
If you are planning to buy or sell real estate, please speak with our team. We are here to help you stay informed and up to date. Harvey Kalles Real Estate has been in business since 1957 and we bring a wealth of experience to changing markets.
