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Toronto Housing Prices Hit a New High

June 12, 2015

Paul Etherington, President of the Toronto Real Estate Board, announced on June 3rd that there was a reported 11,706 sales in May 2015.

Compared to the recorded sales in May 2014, there has been a increase of 6.3% this year. Sales were up for all major housing types in the TREB market area overall. Unfortunately, detached homes had a decrease in sales in the City of Toronto because the supply of low-listings were constrained.

Etherington stated, “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. 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.”

TREB’s Director of Market Analysis Jason Mercer stated, “Tight market conditions, especially for singles, semis and town homes in the GTA, have resulted in strong price growth regardless of the price metric being considered. 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.”

A strong price growth has been established by the record May transactions and also the drop in the available house listings for sales. The MLS® Home Price Index (HPI) can estimate price growth through benchmark homes. This allows the price growth to not be affected by the mix of sales activities. The MLS® Home Price Index Composite Benchmark in May every year has been up by 8.9%.

In May 2015, all home types combined have had a increased by 11% annually in the average selling price to $649,599. The proportion of high-end home sales continue to have a higher annual rate of average price growth compared to 2014.