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The May 2019 report from the Toronto Real Estate Board (TREB) shows a rebound from the historic lows the Greater Toronto Area housing market experienced over the same month last year, while tightening conditions and price growth continue to push the cost of a new home higher. After what TREB President Garry Bhaura called "a sluggish start to 2019," Q2 2019 is reflecting a positive shift in consumer sentiment toward home ownership.
May 2019 proved to be a big rebound month from the 15-year low in sales recorded back in May 2018. Despite this, the 9,989 transactions recorded last month still falls well below the ten-year average for May of 10,300. An increase in the number of new listings was less pronounced, increasing by 0.8% to 19,386. Year-over-year growth in new listings was outmatched by year-over-year growth in sales, further tightening market conditions in favour of sellers.
“Households continue to see ownership housing in the GTA as a quality long-term investment as population growth from immigration remains strong and the regional economy continues to create jobs across diversity of sectors," reads a statement from TREB President Garry Bhaura.
Price growth and affordability remain a major issue in the region, and the latest price figures reveal that the average selling price for all home types combined jumped by 3.6% in May, now sitting at $838,540. This price growth was most pronounced in the condominium apartment and townhouse market segments. Despite this, TREB’s Chief Market Analyst, Jason Mercer, maintains that the price growth is "largely sustainable" and "above the rate of inflation."
Mercer continues to state that "If, however, we continue to see growth in sales outstrip growth in new listings, price growth will accelerate. This potential outcome underpins calls from TREB and other housing industry stakeholders to address roadblocks preventing a more sustainable and diverse supply of housing reaching the market. Many households are not comfortable listing their homes for sale because they feel that there are no housing options available to better meet their needs.”
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