Toronto Market Update – May 2021

Posted by Nutan Brown on Tuesday, June 8th, 2021 at 7:58am.

The May market stats were released by TRREB last week, and as anticipated the Toronto housing market is starting to see a cool down after a red hot start to 2021.

During May, 11,951 homes were sold in the area, down from 13,663 in April. This represents a 13% decrease compared to the previous month.

Despite the month-over-month decrease, home sales in Toronto increased by 4,594 compared to the same time period last year.

As expressed in previous market updates, the year-over-year increases are not surprising since it was around this time last year that the market was on pause during the COVID-19 health crisis.

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May is typically the strongest month for Toronto real estate, but considering the unique circumstances it failed to live up to this reputation.

According to TRREB president Lisa Patel, "There has been strong demand for ownership housing in all parts of the GTA … fuelled by confidence in economic recovery and low borrowing costs. However, in the absence of a normal pace of population growth, we saw a pullback in sales over the past two months relative to the March peak."

Despite a slight drop in sales last month, TRREB said market conditions remained "tight" enough to push the average selling price to an all-time record in May.

The average home price was $1,108,453 compared with $1,090,992 in April and from $863,563 last May.

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With the unpredictability of the current housing market, it is strongly advised that you to speak with a real estate professional before entering the market. If you have any questions or need some advice, please feel free to contact me.

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