After a 10-month run, the streak is officially over. The Toronto Regional Real Estate Board (TRREB) has released the sales figures for May 2021. With 11,951 transactions reported through the local MLS, sales fell short of the May sales record set in 2016, ending a record-setting stretch that began back in July 2020.
May 2020 was the second full month of the pandemic, and while housing activity was on the rise from the month before, conditions had not yet recovered. With that in mind, sales for May 2021 were up 160.1% year-over-year. However, if we consider the 10-year sales average of 10,336 for the month of May, sales were up 15.6% from what is typical for this time of year.
Bucking the seasonal trend, the number of sales declined by 13.6% in May when compared to April. The demand is there, but inventory remains low, making it more difficult for would-be purchasers. New listings were down 10.8% from April. With only 12,253 Active Listings on the market, the supply of housing in the GTA now sits at one month.
Listings continue to sell at a rapid pace. The average sale in May took place in only 11 Days on Market, although this varies with housing type and region. Single detached homes sold in 10 days on average for all TRREB districts, but in only 4 days in Toronto’s C11 district, and in 7 days in areas like Ajax, Whitby and Orangeville. Semi-detached homes are selling in 9 days, townhomes are selling in 10 days, and condo-apartments are selling in 13 days.
A statistic we’ve been tracking for some time is the demand for ground-level housing outside the City of Toronto. In May, roughly 76% of all low-rise sales occurred in the 905, as buyers look for lower price points and more space than can be found in the 416.
The low inventory and high demand continue to put upward pressure on home prices. May’s average sales price of $1,108,453 was an increase of 28.4% year-over-year. The MLS Home Price Index (HPI) Composite Benchmark, which serves as a better indicator of annual inflation, was up 18.8%. The biggest increase in value was found in single detached homes which are up 25.1%.
Looking at price by category, detached homes sold for an average of $1,415,698, representing a year-over-year increase of 37%. The average price for semi-detached homes was $1,064,361 (+22.6%) and townhomes rose to $866,349 (+26.2%). The average price of condos was $682,280, up 9.1% from a year earlier. It is worth noting that condo prices in the 905 were up 21.4%, on average.
The market for real estate remains strong across the GTA. Though the pace may be slightly less frenetic than in March and April, supply is extremely tight, prices are rising, and desirable homes do not stay on the market for long. If you intend to buy or sell real estate, be sure to speak with a Harvey Kalles Real Estate sales professional to put yourself in the best position for a successful outcome.
