Toronto’s Real Estate market seems to be on an uptick with month-over-month sales for May 2020 to be substantially higher than April of the same year. Moreover, the number of new listings that entered TRREB’s MLS system were up by 47.5 per cent.
As reported by the city’s real estate board, home sales for the month of May 2020 increased by 55.2 per cent compared to the previous month. Factoring in seasonally adjusted sales, the figures were up by 53.2 per cent month-over-month, the report said.
Greater Toronto Area REALTORS reported 4,606 sales through the MLS system for May 2020 and this number was down by 53.7 per cent when compared to the numbers of last year. While the number of sales was down on a year-over-year basis owing to the ongoing COVID-19 situation, the decline was less than the 67.1 per cent Y-o-y decline reported in April 2020.
“While the public health and economic concerns surrounding COVID-19 continue to impact the housing market, the May sales result represented a marked improvement over April. TRREB released updated Ipsos consumer intentions polling results in May that indicated that 27 per cent of GTA households were likely to purchase a home over the next year. Providing we continue to see a gradual re-opening of the economy, it is very possible that home sales will continue to improve in the coming months,” said Mr. Collins.
The average selling price for homes was up by three per cent to $863,599 in comparison to May 2019. On a seasonally adjusted basis, the average selling price was up by 4.6 per cent month-over-month compared to April 2020, the report said.
Similar to home sales, there was a noticeable improvement in rental transactions between April 2020 and May 2020. The number of one-bedroom rentals, at 1,290, was well-above the 754 mark for April. Similarly, the number of two-bedroom rentals, at 820, was well-above the 489 rentals reported for April, the TTREB report added.
“With home sales and new listings continuing to trend in unison in May, market conditions remained balanced. This balance was evidenced by year-over-year average price growth slightly above the Bank of Canada’s long-term target for inflation. If current market conditions are sustained during the gradual reopening of the GTA economy, a moderate pace of year-over-year price growth could continue as we move through the spring and summer months,” said Jason Mercer, TRREB’s Chief Market Analyst.