The Toronto Spring Back: May’s Market Momentum on Full Display
As the saying goes, “April showers bring May flowers,” and the Toronto housing market has indeed blossomed this May. The Greater Toronto Area (GTA) sales activity has marked a significant upturn, creating exciting momentum. While it is exciting to see that Toronto has largely closed the gap on the bottoming of the market in late 2022 and early 2023, we are not quite back to the prices of 2022. It is also worth noting that selling strategies started to shift in late May. I expect we’ll see this continue through the summer: Instead of ultra-low asking prices with offer dates and hopes for bidding wars, sellers are adjusting asking prices to align with expectations.
Inventory Constraints Create Challenges and Opportunities
The current challenge is meeting the increased demand with relatively low inventory. This age-old supply-demand predicament, however, presents an opportunity for sellers who may have been biding their time until now. With price appreciation in recent months, we have certainly closed the gap on the bottoming out of the market in late 2022 and early 2023, but overall we’re not quite back to peak prices of early 2022. In many neighbourhoods, it is an opportune time to sell.
The market’s pulse quickened in May, echoing the rhythm of a city on the rebound. The Toronto Regional Real Estate Board (TRREB) reported an impressive 9,012 sales for May 2023, marking a 24.7% leap over the sales figures from May 2022. This robust activity, coupled with the 18.7% year-over-year drop in new listings, paints a clear picture: the thirst for ownership housing is far from quenched.
Returning Buyers, Active Offer Nights, and Multiple Bids
Riding the wave of this resurgence are the buyers. Undeterred by the higher cost of borrowing, they’re diving back into the market, fueled by robust rent growth and record-setting population growth. However, with the supply of listings struggling to keep up with the demand, the market is being swept up in a strong current that has exerted upward pressure on selling prices.
According to the MLS® Home Price Index (HPI), the composite benchmark for May dipped by 6.9% year-over-year. Nevertheless, it increased by 3.2% on a seasonally adjusted monthly basis compared to April 2023. Meanwhile, the average selling price gently landed at $1,196,101, showing a slight decline of 1.2% compared to May 2022. However, on a seasonally adjusted monthly basis, the average selling price witnessed a healthy uplift of 3.5% over April 2023.
We look forward to keeping you informed with our next market update in June. Until then, remember that we’re always here to help you with your real estate needs and answer any questions.
Thank you for being a part of our community.
Cailey Heaps
The Lobby
As we look forward to a promising summer, the Toronto real estate market continues to show resilience. We invite you to stay connected with us, explore the opportunities, and journey through this vibrant marketplace.
In the spirit of this exploration, we present to you The Lobby by Heaps Estrin. Far more than a real estate office, The Lobby is a community hub for creativity and inspiration. We offer concierge-level services, curated shopping experiences, and a platform for engaging community events.
Join us for upcoming events:
– Imli Popup: Discover Indian block printed bedding and quilts from June 8th – 11th.
– Storied Homes Walking Tour: Take a stroll through Summerhill’s history with Alex Corey on June 10th.
– Jaxx & Marbles Pop-Up: Join us and Cory Vitiello on June 13th.
– Meet the Maker: Learn about Fogo Island Workshops’ unique designs on June 20th.
If you’re considering hosting your own event, our inviting space is perfect for everything from meetings and launches to tastings and celebrations. Let’s continue this journey together, exploring all the possibilities our community and the Toronto real estate market offer.
