Strong May GTA Home Sales Remain Below March Peak

Toronto, Ontario, CANADA


TORONTO, June 03, 2021 (GLOBE NEWSWIRE) -- Residential transactions reported through TRREB’s MLS® System remained high in May 2021, but fell short of the 2016 record and were below this year’s March peak. Despite a slight ebb in sales over the last two months, market conditions remained tight enough to push the average selling price to an all-time record in May.

Greater Toronto Area REALTORS® reported 11,951 sales in May 2021 – more than double the result from May 2020, the second full month of the pandemic. May 2021 sales were below the May 2016 record of 12,789 but remained well above the average May sales of 10,336 for the 2010 through 2019 period. Often, May is the strongest sales month in any given year; however, 2021 results bucked this trend, with May sales below the 15,646 deals reported in March.

“There has been strong demand for ownership housing in all parts of the GTA for both ground-oriented home types and condominium apartments. This was fueled by confidence in economic recovery and low borrowing costs. However, in the absence of a normal pace of population growth, we saw a pullback in sales over the past two months relative to the March peak,” said TRREB President Lisa Patel.

The MLS® Home Price Index Composite Benchmark was up by close to 19 per cent year-over-year in May 2021. The average selling price across all home types was up by 28.4 per cent year-over-year, reaching a record $1,108,453. On a seasonally adjusted basis, the average price increased by 1.1 per cent between April and May 2021.

“While sales have trended off the March 2021 peak, so too have new listings. This means that people actively looking to purchase a home continue to face a lot of competition from other buyers, which results in very strong upward pressure on selling prices. This competition is becoming more widespread with tighter market conditions in the condominium apartment segment as well,” said TRREB Chief Market Analyst Jason Mercer.

“The housing supply shortage in southern Ontario has been well documented. Policymakers at all levels have acknowledged that supply is an issue. It is important to understand that dealing with this issue will be important not only for ensuring long-term housing affordability, but also the economic competitiveness of the Greater Golden Horseshoe. People and businesses are more likely to locate in regions that have an ample supply of affordable homeownership and rental options,” said TRREB CEO John DiMichele.

Summary of TRREB MLS® System Sales and Average Price May 1–31, 2021
 20212020
 SalesAverage PriceNew ListingsSalesAverage PriceNew Listings
 City of Toronto ("416")4,1181,116,7367,0511,489955,7223,315
 Rest of GTA ("905")7,8331,104,09811,5353,105819,3685,811
 GTA11,9511,108,45318,5864,594863,5639,126


TRREB MLS® System Sales & Average Price by Home Type May 1–31, 2021
 SalesAverage Price
 416905Total416905Total
       
 Detached1,2554,4635,7181,716,2721,331,1761,415,698
Yr./Yr. % Change191.2%141.5%150.9%20.5%41.3%37.0%
 Semi-Detached4477861,2331,326,153915,4791,064,361
Yr./Yr. % Change172.6%164.6%167.5%16.0%27.8%22.6%
 Townhouse5121,6702,182945,893841,962866,349
Yr./Yr. % Change212.2%157.7%168.7%19.0%27.7%26.2%
 Condo Apartment1,8818292,710716,976603,555682,280
Yr./Yr. % Change159.1%201.5%170.7%6.3%21.4%9.1%

May 2021 Year-Over-Year Per Cent Change in the MLS® HPI
 Composite
(All Types)
Single-Family
Detached
Single-Family
Attached
TownhouseApartment
 TRREB Total18.81%25.07%23.37%19.60%6.61%
 Halton Region25.80%28.95%28.47%23.63%14.26%
 Peel Region18.80%23.08%22.85%18.36%6.81%
 City of Toronto10.66%18.91%16.87%12.45%4.69%
 York Region20.74%22.50%21.94%26.01%11.53%
 Durham Region34.10%34.64%35.22%33.11%25.54%
 Orangeville29.55%30.82%31.62%32.99%4.84%
 South Simcoe County134.07%37.21%38.28%27.23%14.30%
 
 Source: Toronto Regional Real Estate Board
 1South Simcoe includes Adjala-Tosorontio, Bradford West Gwillimbury, Essa, Innisfil and New Tecumseth
 


Year-to-Date Summary of TRREB MLS® System Sales and Average Price May 2021
 20212020
 SalesAverage PriceNew ListingsSalesAverage PriceNew Listings
 City of Toronto ("416")20,3231,046,41330,0309,321952,80116,595
 Rest of GTA ("905")38,7541,087,10156,72517,913839,55631,611
 GTA59,0771,073,10486,75527,234878,31548,206


YTD TRREB MLS® System Sales & Average Price by Home Type May 2021
 SalesAverage Price
 416905Total416905Total
       
 Detached5,44722,00527,4521,703,7971,314,7191,391,920
Yr./Yr. % Change103.7%115.2%112.8%19.6%34.3%29.9%
 Semi-Detached1,8623,6335,4951,301,109924,1601,051,890
Yr./Yr. % Change137.5%110.9%119.2%14.5%24.8%21.7%
 Townhouse2,2447,95810,202928,678836,711856,940
Yr./Yr. % Change132.1%117.1%120.3%13.8%23.0%21.0%
 Condo Apartment10,6354,76815,403694,152589,396661,724
Yr./Yr. % Change119.5%132.8%123.5%0.1%12.7%2.9%

Source: Toronto Regional Real Estate Board

Seasonally Adjusted TRREB MLS® Sales and Average Price1 
     
 SalesMonth-over-Month
% Chg.
Average PriceMonth-over-Month
% Chg.
May '203,69853.9%$826,5954.6%
June '206,64079.6%$904,1869.4%
July '209,55944.0%$952,2885.3%
August '2010,65111.4%$981,5243.1%
September '2010,163-4.6%$952,851-2.9%
October '209,832-3.3%$957,6190.5%
November '209,423-4.2%$966,1700.9%
December '2011,30920.0%$978,5191.3%
January '2111,7173.6%$1,008,9023.1%
February '2112,8099.3%$1,034,2652.5%
March '2112,9300.9%$1,089,0215.3%
April '2110,740-16.9%$1,050,772-3.5%
May '219,786-8.9%$1,061,9871.1%
Source: Toronto Regional Real Estate Board; CREA Seasonal Adjustment  
1 Preliminary seasonal adjustment undertaken by the Canadian Real Estate Association (CREA). Removing normal seasonal variations allows for more meaningful analysis of monthly changes and underlying trends.

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