This year’s active spring market has continued its strong pace. The Toronto Real Estate Board released the housing figures for May and with 9,989 sales reported, there was an 18.9% increase in sales volume over the same period last year. Though the jump is dramatic, it should be noted that May 2018 represented a 15-year low and that sales were still slightly off the 10-year-average for May, which is just under 10,300.
The average price of all transactions rose to $838,540, representing a year-over-year gain of 3.6%. The MLS Home Price Index (HPI) Composite benchmark, which is a more accurate indicator of inflation in the market, was up 3.1%. New listings rose 0.8% year-over-year to 19,386 – well below the rate of sales – representing a further tightening of supply in the GTA. With that in mind, expect upward pressure on prices as buyers compete for a limited housing stock. There is currently a two month supply in the GTA, down from 2.5 months a year ago.