Toronto Home prices hit new all-time record high

Dated: June 3 2021

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Skyrocketing home prices appear to have put a damper on sales during what is traditionally the most active month of the year for real estate transactions in Toronto — or is it that a slower market is driving purchase prices higher?

Chicken, egg, lack of supply, rising demand, seller hesitancy, competition among buyers, pricier homes... it's all related. The fact of the matter is that home sales took a dip last month, compared to the month (actually the five months) previous.

"Residential transactions reported through TRREB's MLS® System remained high in May 2021, but fell short of the 2016 record and were below this year's March peak," reads the Toronto Regional Real Estate Board's latest Market Watch report, released Thursday.

"Despite a slight ebb in sales over the last two months, market conditions remained tight enough to push the average selling price to an all-time record in May."

The average price across all home types was in fact up nearly 30 per cent (28.4), year-over-year, in May of 2021, hitting a new record of $1,108,453.

In the City of Toronto specifically, the average price of a detached home sold last month was $1,716,272 — a 20.5 per cent increase from May of 2020. Detached homes in the 905 regions surrounding Toronto marked an even greater jump in sales prices, rising 41.3 per cent over the past 12 months to reach a new average of $1,331,176.

"There has been strong demand for ownership housing in all parts of the GTA for both ground-oriented home types and condominium apartments. This was fueled by confidence in economic recovery and low borrowing costs," said TRREB President Lisa Patel in a report releasing the latest data this morning.

"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."

TRREB was careful to note in its report that, while sales are trending downward on a monthly basis, they were still up last month compared to the 10-year average.

Realtors reported 11,951 sales sales last month across the GTA, up from just 4,594 in May of 2020 (which, to be fair, was an atypically slow month following the onset of the COVID-19 pandemic.)

"May 2021 sales were below the May 2016 record of 12,789 but remained well above the average May sales of 10,336 for the 2010 through 2019 period," notes the TRREB report.

"Often, May is the strongest sales month in any given year; however, 2021 results bucked this trend, with May sales below the 15,646 deals reported in March."

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Robert Piperni

Robert started in Real Estate over 20 years ago as a Real Estate Investor, building a portfolio of real estate. His passion for real estate and his experience as a licensed mortgage agent has helped h....

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