The Toronto Real Estate Board reported 9,989 transactions in May 2019. While this result represented a substantial increase of 18.9% over the 15-year low in May 2018, it should be noted that the result was still below the average for month of May sales for the previous ten years, which stands at almost 10,300.
After a sluggish start to 2019, the second quarter appears to be reflecting a positive shift in consumer sentiment toward ownership housing. Households continue to see ownership housing in Toronto as a quality long-term investment as population growth from immigration remains strong and the regional economy continues to create jobs across diversity of sectors.
The number of new listings in May 2019 was up only slightly compared to May 2018, increasing by 0.8% to 19,386. Year-over-year growth in new listings was far outstripped by year-over-year growth in sales. This means that market conditions continued to tighten in favour of sellers. The MLS® Home Price Index (HPI) Composite benchmark price was up by 3.1% on a year-over-basis. The average selling price for all home types combined was up by a similar 3.6% to $838,540. Price growth was driven by the Toronto condo, loft and townhouse market segments.
We are experiencing annual rates of price growth that are largely sustainable right now in Toronto – above the rate of inflation, but in the single digits. If, however, we continue to see growth in sales outstrip growth in new listings, price growth will accelerate.
If you want to buy or sell a Toronto condo or loft, contact Casey Ragan at 416-486-5588 or by email at email@example.com
“Toronto’s Condo Authority”