The May 2015 real estate numbers are in from the Toronto Real Estate Board, and we're not at all surprised to find that market conditions are tighter than ever this spring, particularly in high-demand market segments.
After several months of increases in both sales and prices, May saw a return to the pattern that drives price increases the most in the detached segment: a dip in sales for detached homes, driven in large part by a relative lack of listings. Fewer homes to purchase plus more buyers wanting to purchase equals a major price increase: detached homes in the GTA year-over-year were 14% more expensive on average than last May, with an almost 20% increase in the City of Toronto itself.
Other segments weren't left out, however. Every single market segment, including condos, saw a year-over-year increase: condos posted a very respectable 5.5% overall rise in average price for the GTA.
TREB Director of Market Analysis Jason Mercer puts it best: “Tight market conditions, especially for singles, semis and town homes in the GTA, have resulted in strong price growth regardless of the price metric being considered. With no relief so far on the listings front, expect similar rates of price growth as we move through the remainder of 2015. At this point, a number of months where listings growth outstrips sales growth would be required to satisfy pent-up demand."