June 4, 2021 | Buying
The Toronto Real Estate Board specified that residential transactions in May 2021 remained steady, however, fell short of the 2016 record and remained below the peak numbers we saw in March. Despite the slight decrease in sales over the last two months, market conditions remained tight enough to drive the average selling price to an all-time record in May.
GTA Realtors reported 11,951 sales in May 2021 – more than double the result from May 2020, the second full month of the COVID-19 pandemic. May 2021 sales were below the May 2016 record of 12,789- but not by much! Sales in May 2021 remained well above the average May sales of 10,366 from 2010 through 2019. Usually, May is the strongest sale month in any given year; however, 2021 results bucked this trend, with May dales below the 15,646 deals reported in March of this year.
The demand for homeownership throughout the GTA has increased for both freehold and condominium properties. This demand was fueled by confidence in economic recovery and low borrowing costs. Nevertheless, due to the absence of typical paced population growth, we saw a pullback in sales over the past two months relative to the peak numbers we saw in March.
The average selling price across all home types was up by 28.4% year-over-year, reaching a record $1,108,453. On a seasonally adjusted basis, the average price increased by 1.1% between April and May 2021. The MLS Home Price Index Composite Benchmark increased by close to 19% year-over-year in May 2021.
While sales have trended off the March 2021 peak, so too have new listings. What this means is that people who are actively looking to purchase a home continue to face increased competition from other Buyers, which as a result, ups the overall selling price. This competition is becoming more widespread with tighter market conditions in the condominium apartment segment as well.
There is no doubt that transacting in Real Estate has certainly transformed- Throughout this pandemic we have had the pleasure of servicing a number of our clients, resulting in successful and most of all SAFE transactions throughout. Severe precautions are in place, and while we keep those in the forefront, we are still here to offer our guidance and expertise to help you make the next real estate move that is right for you and find ways to take advantage of the current Toronto Real Estate Market. Contact us today for a no-obligation discussion on how we can help you throughout your real estate journey.