Rapid Increase in New Listings in May

Toronto City by Benny Lin

Greater Toronto REALTORS® released a new report on monthly resale housing market figures recorded through the TorontoMLS System in May. The total number of reported transactions reached 10,850, an 11 per cent rise compared to the 9,766 transactions in May 2011. The 905 regions surrounding the City of Toronto saw the strongest growth in the area.

Richard Silver, Toronto Real Estate Board (TREB) President, commented on the findings: “Sales growth in the 905 area code was stronger than growth in the City of Toronto across all major home types. While lower average prices are certainly one factor that has contributed to this trend, recent polling also suggests that the City of Toronto’s land transfer tax has also prompted many households to look outside of the City for their ownership housing needs.”

The average price for sales was $516,787, up 6.5 per cent in a year-to-year comparison. The figures show that price growth is mainly driven by the low-rise market segment. The most substantial increase was experienced by new listings; they rose by more than 20 per cent to 19,177.

Jason Mercer, TREB’s Senior Manager of Market Analysis, said: “Strong competition between buyers seeking to purchase low-rise home types drove strong price growth in May. However, if new listings continue to grow at the pace they did in May for the remainder of 2012, the annual rate of price growth should begin to moderate on a sustained basis.”