May 2023 proved to be one of the strongest sales months that the Greater Toronto Area has seen in a long time; home sales were up on both a monthly and annual basis for the first time since 2021’s record-breaking year. The Toronto Regional Real Estate Board (TRREB) reported that 9,012 homes traded hands in May, a month-over-month increase of 19.7% and a year-over-year increase of 24.7%.
All property types saw significant sales growth, but semi-detached and townhouse properties took center stage. Semi-detached sales were up 24.9% and townhouse sales were equally as impressive, increasing by 24% from April 2023.
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“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,” said TRREB Chief Market Analyst, Jason Mercer.
Prices Climbing Back to 2022 Levels
At just a little over $14,000 shy of May 2022’s average home price, the benchmark price for May 2023 continued to rise, perhaps indicating the GTA real estate market is reviving. The benchmark price for last month reached $1,196,101 – a 3.2% increase from April and a small 1.2% dip from last year, the smallest gap in price since October 2022.
Individual property types also edged closer, or even surpassed, their May 2022 price levels. Semi-detached homes experienced the largest month-over-month price growth at 5.5% with the average price now at $1,198,185. The average price for a detached home in May was $1,556,566, a month-over-month increase of 4.5%. Townhouses had the largest year-over-year increase, with the average price jumping up by 2.5% year-over-year and 1.7% month-over-month, reaching $1,003,152.
Despite New Listings Up, Months of Supply Down
As has been the case for several months, the demand for houses is outpacing supply creating an especially tight market. 15,194 new homes were added to the market last month, and though this was an increase of 3,830 from April 2023, it wasn’t enough to keep months of supply up. Months of supply for the region now sits at 2.2 months, down from 2.3 months in April and March 2023.
“If we don’t quickly see housing supply catch up to population growth, the economic development of our region will be hampered as people and businesses look elsewhere to live and invest,” said TRREB President Paul Baron.
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