Home prices in the country's largest real estate market have reached a new all-time high, even as sales pulled back in May.
The average price of all homes sold across the Greater Toronto Area (GTA) reached $1,108,453 last month, according to data released by the Toronto Regional Real Estate Board (TRREB) Thursday. The previous record was set in March, at just shy of $1.1 million.
The record was notched despite a break from a trend that TRREB noted has often made May the busiest month for sales in Toronto's housing market. Almost 12,000 properties traded hands across the GTA last month; while that represented a 160 per cent surge from a year earlier, it was a downturn from April when 13,663 homes were sold.
In a release, TRREB indicated tighter inventory was largely responsible for propelling prices to all-time highs in May. Indeed, active listings in the month rose just seven per cent year-over-year.
"...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 in a release.
There was a consistent theme in the activity across all property types in May, as sales of detached houses, semi-detached houses, townhouses and condos more than doubled on a year-over-year basis but slumped when compared to April.
Meanwhile, Canadians' willingness to pay up for more space was evident as the average selling price for a coveted detached home in the GTA reached $1,415,698 in May; that was a modest increase from April and a 37 per cent surge compared to a year earlier.