GTA REALTORS® Release May 2023 Stats
In May 2023, the housing market in the Greater Toronto Area (GTA) demonstrated continued improvement in terms of sales. However, the supply of available homes for sale failed to keep pace with the demand for ownership housing. The proportion of sales compared to new listings increased significantly compared to the previous year, indicating intensified competition among buyers. As a result, the average selling price rose to nearly $1.2 million last month.
Paul Baron, President of the Toronto Regional Real Estate Board (TRREB), expressed concern about the housing supply issue, noting that despite positive policy changes, governments have been falling short in this area for some time. Ipsos polling revealed that City of Toronto residents rated the Council poorly in terms of housing affordability and identified the lack of supply as a major problem. This issue extends beyond Toronto and persists throughout the Greater Golden Horseshoe region. If housing supply fails to catch up with population growth, it could impede the economic development of the region, leading people and businesses to seek alternatives elsewhere to reside and invest.
According to TRREB, GTA REALTORS® reported 9,012 sales via TRREB's MLS® System in May 2023, marking a 24.7 percent increase compared to May 2022. However, new listings decreased by 18.7 percent during the same period. When seasonally adjusted on a month-over-month basis, sales rose by 5.2 percent compared to April 2023.
TRREB Chief Market Analyst Jason Mercer highlighted that the demand for ownership housing has significantly risen in recent months. Many homebuyers have adjusted their housing preferences due to higher borrowing costs and are reentering the market. Additionally, robust rent growth and record population expansion resulting from immigration have also contributed to increased home sales. Insufficient listing supply relative to sales has led to upward pressure on selling prices during the spring season.
In May 2023, the MLS® Home Price Index (HPI) composite benchmark decreased by 6.9 percent compared to the previous year but increased by 3.2 percent on a seasonally adjusted monthly basis compared to April 2023. The average selling price was $1,196,101, representing a slight 1.2 percent decline compared to May 2022. However, on a seasonally adjusted monthly basis, the average selling price rose by 3.5 percent compared to April 2023.
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