The Toronto housing market has become more competitive, with home sales increasing while the number of new listings declined compared to the same period last year. As available inventory continues to be absorbed, buyers are facing increased competition in many neighbourhoods, a trend that could lead to stabilizing prices and future price growth.
"Spring sales have been stronger than last year, reflecting improved affordability stemming from lower selling prices and borrowing costs," said TRREB President Daniel Steinfeld. "Sales are forecast to improve further as we move through the second half of this year. Recovery would be further bolstered by positive news on the trade front along with an easing of geopolitical tensions and related uncertainty."
TRREB Chief Information Officer Jason Mercer noted that while inventory levels have declined over the past year, buyers have still maintained considerable negotiating power throughout the spring market.
"Looking ahead, if sales strengthen further relative to listings, selling prices will level off and even start to grow as we move into 2027," Mercer said.
There was a reported 6,583 home sales in May, representing a 6.3% increase compared to last year. Meanwhile, 17,698 new listings entered the market, marking an 18.9% year-over-year decline.
The market also tightened on a month-to-month basis. Seasonally adjusted home sales increased 10% from April, while new listings fell by 2.1%, indicating continued strengthening of market conditions.
Despite the improving balance between supply and demand, home prices remained lower than a year ago. The MLS Home Price Index Composite benchmark declined 6.7% year-over-year in May, while the average selling price fell 4.6% to $1,069,700 compared to last year.
However, the average selling price edged slightly higher from last month, while the MLS HPI Composite saw only a modest decline. These trends suggest that the market may be approaching a turning point, with prices expected to stabilize and potentially begin rising as inventory continues to tighten and buyer demand strengthens.
Contact me if you are planning to sell or buy a home in the summer!
According to the Toronto Regional Real Estate Board, stronger spring sales have been driven by improved affordability resulting from lower home prices and reduced borrowing costs.
"Spring sales have been stronger than last year, reflecting improved affordability stemming from lower selling prices and borrowing costs," said TRREB President Daniel Steinfeld. "Sales are forecast to improve further as we move through the second half of this year. Recovery would be further bolstered by positive news on the trade front along with an easing of geopolitical tensions and related uncertainty."
TRREB Chief Information Officer Jason Mercer noted that while inventory levels have declined over the past year, buyers have still maintained considerable negotiating power throughout the spring market.
"Looking ahead, if sales strengthen further relative to listings, selling prices will level off and even start to grow as we move into 2027," Mercer said.
There was a reported 6,583 home sales in May, representing a 6.3% increase compared to last year. Meanwhile, 17,698 new listings entered the market, marking an 18.9% year-over-year decline.
The market also tightened on a month-to-month basis. Seasonally adjusted home sales increased 10% from April, while new listings fell by 2.1%, indicating continued strengthening of market conditions.
Despite the improving balance between supply and demand, home prices remained lower than a year ago. The MLS Home Price Index Composite benchmark declined 6.7% year-over-year in May, while the average selling price fell 4.6% to $1,069,700 compared to last year.
However, the average selling price edged slightly higher from last month, while the MLS HPI Composite saw only a modest decline. These trends suggest that the market may be approaching a turning point, with prices expected to stabilize and potentially begin rising as inventory continues to tighten and buyer demand strengthens.
Contact me if you are planning to sell or buy a home in the summer!