Toronto Real Estate Statistics May 2015

Through the Roof!

We have an expression in the English language. Actually, an idiom. When something goes "through the roof," amongst other things, it means prices went up very quickly! For the first time in several years, the price increase did not moderate for the month of May. In fact it is the largest percentage increase seen in recent years over the same time period.

The average selling price for all home types combined in May 2015 was up by 11% annually to $649,599. Typically, at this time of year we see a moderation in the price increase due to more inventory and a slowdown in the spring market as buyers have more choices. This year the pace of newer listings coming onto the market has slowed in many of the demand neighbourhoods.
For the greater Toronto Area, sales were up for all major housing types including condos, detached homes, semi-detached, and townhomes. However, in the City of Toronto, where the supply of low-rise listings has been constrained, sales were actually down for detached homes. With 11,706 sales in the month of May 2015, representing an increase of 6.3% versus the previous year, despite the shortage of inventory, almost record volume was achieved.
For those neighbourhoods with low or no inventory, prices have been driven to record highs. With extremely low inventory in the single family category of homes, it will take several more months before prices start to moderate. However with interest rates still at historic lows and more longer term amortization offerings, qualified buyers can still achieve affordability.
Home ownership is still viewed as desirable and for many foreign buyers Toronto is still seen as a bargain compared to other world class large cities around the globe.