I hope you’re enjoying the rising temperatures as we transition from Spring to Summer. The Greater Toronto Area housing market is showing signs of improvement, with sales in May increasing by nearly 25% compared to the same period last year. This surge in buyer competition has pushed the average selling price to almost $1.2 million, approaching the levels seen in May 2022.
The main catalyst behind this market growth is the limited supply of homes available for sale. Active listings have decreased by 23% compared to May of the previous year. In fact, the months of inventory figure, which gauges the speed at which homes are selling, currently stands at 1.3 months. This means that if no new homes were added to the market, we would exhaust our inventory in just over a month. As a result, there has been a resurgence in demand for home ownership as potential buyers reassess their housing needs amidst higher borrowing costs.
Jason Mercer, the Chief Market Analyst at TRREB, highlights that strong rent and record population growth driven by immigration have also contributed to increased home sales. However, the supply of listings has failed to keep pace with demand, leading to upward pressure on selling prices this spring.
Given the limited supply, many consumers and investors have turned their attention to new construction. The GTA has witnessed a flurry of new condominium site launches. With a wide range of options available and projects taking longer to sell out, there is now more choice in the new construction market.
Remember, I’m here to help you navigate our ever-changing real estate market. Feel free to reach out to me with any questions you may have.
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