Real Estate Market Watch May 2021

Spring market report

In May 2021, the number of residential transactions reported by TRREB’s MLS® System remained strong, but dropped short of the 2016 high and dipped below this year’s March peak. Despite a minor drop in sales in the prior two months, market conditions were tight enough in May to propel the average selling price to an all-time high.

REALTORS® in the Greater Toronto Area recorded 11,951 sales in May 2021, more than double the number reported in May 2020, the pandemic’s second full month. May 2021 sales were down from the previous high of 12,789 in May 2016, but they were still significantly above the average May sales of 10,336 from 2010 to 2019. Typically, May is the busiest sales month of the year; however, the 2021 numbers defied expectations, with May sales falling short of the 15,646 deals announced in March.

“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. 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,” said TRREB President Lisa Patel.

In May 2021, the MLS® Home Price Index Composite Benchmark was up about 19% year over year. The average selling price for all house types increased by 28.4% year over year to a new high of $1,108,453. Between April and May 2021, the average price climbed by 1.1 percent on a seasonally adjusted basis.

“While sales have trended off the March 2021 peak, so too have new listings. This means that people actively looking to purchase a home continue to face a lot of competition from other buyers, which results in very strong upward pressure on selling prices. This competition is becoming more widespread with tighter market conditions in the condominium apartment segment as well,” said TRREB Chief Market Analyst Jason Mercer.

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Condominium Sales Stats

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Condominium Rental Stats

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