Toronto home sales surge nearly 19 per cent in May 2019, Toronto home prices climbed last month as sales volumes roared ahead by almost 18.9% per cent, Toronto's housing market could be shifting to favour sellers as home sales growth outpaces listings growth.
The Toronto Real Estate Board reported 9,989 homes were sold in the Greater Toronto Area in May, up 18.9 per cent compared with the same month last year. But the TREB cautioned that sales in May, 2018, were at a 15-year low, and the activity last month was still below the 10-year May average of 10,300 sales.
May'19 marks the second consecutive month that sales have climbed sharply compared with a year ago, suggesting the Toronto market is beginning to gain steam after almost two years of sluggish sales conditions. Sales in April were up 16.8 per cent compared with a year ago, while first-quarter sales were essentially flat.
“After a sluggish start to 2019, the second quarter appears to be reflecting a positive shift in consumer sentiment toward ownership housing,” TREB said.
There were 9,989 sales in May, up 18.9 per cent from the 15-year low for the month hit last year, while listings grew by only 0.8 per cent to 19,386. Which was far outpaced by the surge in sales. This means market conditions continued to tighten in favour of sellers.
TREB analyst said Toronto’s rate of price growth is “largely sustainable” right now, above the rate of inflation “but in the single digits.”
“If, however, we continue to see growth in sales outstrip growth in new listings, price growth will accelerate,”. Many people are not comfortable listing their homes for sale, TREB said, because they feel there are no housing options available that better meet their needs.
A tightening market helped lead to a 3.6 per cent year-over-year increase in the average selling price for all housing types to $838,540, compared with a 1.9 per cent increase in April and 0.5 per cent for March, the board said.
TREB said most of Toronto’s price increase in May came from condominium sales, with prices climbing 4.9 per cent to an average of $590,876 across the GTA. While the number of detached homes sold in May climbed by 25 per cent, the average selling price rose just 1.1 per cent. TREB said the average detached house in the City of Toronto sold for $1,384,993 in May, up 1.5 per cent, while the average detached house in the suburban 905 area-code region surrounding Toronto sold for $925,621, up 0.3 per cent.
The single-digit price increases are largely sustainable, but if listings continue to lag it could accelerate price growth.
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