GTA REALTORS® Release May 2023 Stats
Monday Jun 05th, 2023
The housing market in the Greater Toronto Area (GTA) saw continued improvement in May 2023 in terms of sales. However, there was a problem - the number of homes available for sale couldn't keep up with the demand from people wanting to own homes. This led to a significant increase in competition among buyers, causing the average selling price to rise to nearly $1.2 million last month.
The President of the Toronto Regional Real Estate Board (TRREB), Paul Baron, pointed out that while there have been positive policy changes in recent years, the government has been falling short in providing enough housing supply. A recent survey showed that many residents of the City of Toronto gave the Council a failing grade on housing affordability, with the lack of housing supply being a major concern. This issue isn't limited to Toronto but extends throughout the Greater Golden Horseshoe region. If housing supply doesn't catch up to the population growth soon, it could affect the economic development of the area as people and businesses may seek other places to live and invest.
In May 2023, there were 9,012 home sales reported by GTA REALTORS® through TRREB's MLS® System, which is a significant 24.7% increase compared to May 2022. However, new listings decreased by 18.7% during the same period. On a month-to-month basis, when considering seasonal adjustments, sales increased by 5.2% compared to April 2023.
The demand for owning homes has risen notably in recent months. Many homebuyers adjusted their housing preferences due to higher borrowing costs but are now returning to the market. Strong rent growth and an increase in population due to immigration have also supported higher home sales. However, the number of available listings hasn't kept up with the demand, leading to an upward push on selling prices during the spring, according to TRREB Chief Market Analyst Jason Mercer.
The MLS® Home Price Index (HPI) composite benchmark showed a 6.9% decline compared to May 2022. But when considering seasonal adjustments and looking at month-to-month figures, it went up by 3.2% compared to April 2023. The average selling price in May 2023 was $1,196,101, representing a small 1.2% decrease compared to May 2022. But when considering seasonal adjustments, it went up by 3.5% compared to April 2023.