TREB Announces Record High Sales for May 2015
By Lucas on Jun 03, 2015
Remember a couple weeks ago when the Toronto Real Estate Board (TREB) predicted record high sales for May 2015? Well, they were right. The GTA REALTORS reported a total of 11,706 sales through the MLS system last month.
This amount of sales is 6.3% higher than May 2014, and sales were up for every housing type, except for detached homes in the City of Toronto. “During my tenure as TREB President over the past year, it is clear to me that ownership housing remains top of mind as a quality long-term investment for GTA households,” says TREB President Paul Etherington. “This is why, despite a shortage of listings in some market segments, we experienced a record number of sales reported through TREB’s MLS® System for the month of May.”
Via TREB
Record high sales plus a low inventory is an equation for aggressive price growth. The MLS Home Price Index Composite Benchmark saw a year-over-year increase of 8.9%. The average selling price increased 11% to $649,599. The high average price is attributed to the large amount of high-end home sales that have been more prominent compared to 2014.
The average selling price for a detached home in Toronto remains above the $1 million mark, coming in at $1,115,120. And although Toronto saw a decrease in detached home sales, it was still the most popular housing type accounting for 5,845 of May’s transactions. Condo units came in second with 2,519 sales, then townhomes with 1,841, and semis with 1,276.
Via TREB
“Tight market conditions, especially for singles, semis and townhomes in the GTA, have resulted in strong price growth regardless of the price metric being considered, explains Jason Mercer, TREB’s Director of Market Analysis. “With no relief so far on the listings front, expect similar rates of price growth as we move through the remainder of 2015. At this point, a number of months where listings growth outstrips sales growth would be required to satisfy pent-up demand.”
With the inventory of detached homes in the GTA in both the resale and new home markets on the decline, how will the real estate industry manage the rising prices? Stay tuned - we’ll be keeping a close eye on the market!
