In May 2023, the housing market in the Greater Toronto Area (GTA) showed continuous improvement in terms of sales. However, there was a significant shortage of homes available for sale compared to the demand for ownership housing. Sales as a percentage of new listings saw a substantial increase compared to the previous year, indicating heightened competition among buyers, resulting in the average selling price reaching nearly $1.2 million last month.
According to Toronto Regional Real Estate Board (TRREB) President Paul Baron, despite positive policy direction in recent years, governments have been falling short in addressing the issue of housing supply. A recent poll by Ipsos revealed that City of Toronto residents gave the Council a failing grade in terms of housing affordability, citing the lack of supply as the major problem. This issue extends beyond Toronto and persists throughout the Greater Golden Horseshoe. If housing supply doesn't catch up with population growth soon, it will hinder the economic development of the region, leading people and businesses to seek alternatives elsewhere to live and invest.
GTA REALTORS® reported a significant increase in sales, with 9,012 transactions through TRREB's MLS® System in May 2023, marking a 24.7% rise compared to May 2022. Conversely, new listings decreased by 18.7% during the same period. On a seasonally adjusted month-over-month basis, sales were up by 5.2% compared to April 2023.
TRREB Chief Market Analyst Jason Mercer noted that there has been a notable surge in demand for ownership housing in recent months. Many homebuyers have adjusted their housing needs in response to higher borrowing costs and are reentering the market. Additionally, robust rent growth and record population growth resulting from immigration have also contributed to increased home sales. However, the supply of listings has not kept pace with the demand, leading to upward pressure on selling prices during the spring season.
In May 2023, the MLS® Home Price Index (HPI) composite benchmark showed a 6.9% year-over-year decline but increased by 3.2% on a seasonally adjusted monthly basis compared to April 2023.
The average selling price was $1,196,101, representing a marginal 1.2% decline relative to May 2022.
On a seasonally adjusted monthly basis, the average selling price rose by 3.5% compared to April 2023.