MIL-OSI: Strong May GTA Home Sales Remain Below March Peak

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Source: GlobeNewswire (MIL-OSI)

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
  2021 2020
  Sales Average Price New Listings Sales Average Price New Listings
 City of Toronto (“416”) 4,118 1,116,736 7,051 1,489 955,722 3,315
 Rest of GTA (“905”) 7,833 1,104,098 11,535 3,105 819,368 5,811
 GTA 11,951 1,108,453 18,586 4,594 863,563 9,126
TRREB MLS® System Sales & Average Price by Home Type May 1–31, 2021
  Sales Average Price
  416 905 Total 416 905 Total
             
 Detached 1,255 4,463 5,718 1,716,272 1,331,176 1,415,698
Yr./Yr. % Change 191.2% 141.5% 150.9% 20.5% 41.3% 37.0%
 Semi-Detached 447 786 1,233 1,326,153 915,479 1,064,361
Yr./Yr. % Change 172.6% 164.6% 167.5% 16.0% 27.8% 22.6%
 Townhouse 512 1,670 2,182 945,893 841,962 866,349
Yr./Yr. % Change 212.2% 157.7% 168.7% 19.0% 27.7% 26.2%
 Condo Apartment 1,881 829 2,710 716,976 603,555 682,280
Yr./Yr. % Change 159.1% 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
Townhouse Apartment
 TRREB Total 18.81% 25.07% 23.37% 19.60% 6.61%
 Halton Region 25.80% 28.95% 28.47% 23.63% 14.26%
 Peel Region 18.80% 23.08% 22.85% 18.36% 6.81%
 City of Toronto 10.66% 18.91% 16.87% 12.45% 4.69%
 York Region 20.74% 22.50% 21.94% 26.01% 11.53%
 Durham Region 34.10% 34.64% 35.22% 33.11% 25.54%
 Orangeville 29.55% 30.82% 31.62% 32.99% 4.84%
 South Simcoe County1 34.07% 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
  2021 2020
  Sales Average Price New Listings Sales Average Price New Listings
 City of Toronto (“416”) 20,323 1,046,413 30,030 9,321 952,801 16,595
 Rest of GTA (“905”) 38,754 1,087,101 56,725 17,913 839,556 31,611
 GTA 59,077 1,073,104 86,755 27,234 878,315 48,206
YTD TRREB MLS® System Sales & Average Price by Home Type May 2021
  Sales Average Price
  416 905 Total 416 905 Total
             
 Detached 5,447 22,005 27,452 1,703,797 1,314,719 1,391,920
Yr./Yr. % Change 103.7% 115.2% 112.8% 19.6% 34.3% 29.9%
 Semi-Detached 1,862 3,633 5,495 1,301,109 924,160 1,051,890
Yr./Yr. % Change 137.5% 110.9% 119.2% 14.5% 24.8% 21.7%
 Townhouse 2,244 7,958 10,202 928,678 836,711 856,940
Yr./Yr. % Change 132.1% 117.1% 120.3% 13.8% 23.0% 21.0%
 Condo Apartment 10,635 4,768 15,403 694,152 589,396 661,724
Yr./Yr. % Change 119.5% 132.8% 123.5% 0.1% 12.7% 2.9%

Source: Toronto Regional Real Estate Board

Seasonally Adjusted TRREB MLS® Sales and Average Price1  
         
  Sales Month-over-Month
% Chg.
Average Price Month-over-Month
% Chg.
May ’20 3,698 53.9% $826,595 4.6%
June ’20 6,640 79.6% $904,186 9.4%
July ’20 9,559 44.0% $952,288 5.3%
August ’20 10,651 11.4% $981,524 3.1%
September ’20 10,163 -4.6% $952,851 -2.9%
October ’20 9,832 -3.3% $957,619 0.5%
November ’20 9,423 -4.2% $966,170 0.9%
December ’20 11,309 20.0% $978,519 1.3%
January ’21 11,717 3.6% $1,008,902 3.1%
February ’21 12,809 9.3% $1,034,265 2.5%
March ’21 12,930 0.9% $1,089,021 5.3%
April ’21 10,740 -16.9% $1,050,772 -3.5%
May ’21 9,786 -8.9% $1,061,987 1.1%
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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