Hi, I’m Thomas Cook from Toronto's Real Estate Team at RE/MAX and here is our MAY 2021 Toronto real estate market report.
The Toronto real estate market has AGAIN hit a number of records including the 2nd highest ever May total home sales plus the 2nd highest ever condo TH and highrise suite sales during the month.
So… let’s review some of the Toronto Real Estate Board statistics and see what’s happened.
Huge numbers came in once again for May with a near-record 11,951 sales of houses and condos across the GTA. The next closest to this was way back in 2016 when we had 12,789 sales. Low interest rates and high demand are continuing to boost our local market.
Sales were up 160% from May 2020 although that’s a misleading number since last year we were in the midst of the pandemic. Sales were down about 1600 homes from April.
Condo townhouse and high-rise suites hit a near-record with sales up big time year-over-year with 3,677 units being sold. Next highest May was back in 2016 when there were 3,945 units sold.
The May 2021 average sale price for all GTA homes came in at $1,108,453… a big, but misleading 28.4% increase compared to one year ago but the highest ever average sales price number. Since February 2021, the average has been over $1,000,000.
The active listing inventory is one of the strongest indicators of how slow or fast the market has been moving. The ‘active listing’ inventory average for the month of May was up 7% compared to last year at this time.
Active listings for the month were up 5% compared to April 2021.
The sales-to-listings OR percent-chance-of-selling ratio is how we determine what type of market we’re actually in. 24-28% is a neutral market, below 24% is a buyer’s market and above 28% is a seller’s market.
With our busy market… the May ratio dropped back to 97.5% which still is representative of an extremely busy seller’s market.
The days-on-market average for GTA / Toronto homes was 1 day slower at 11 days.
Here’s a snapshot summary of the significant real estate milestones for Toronto in MAY 2021 as we come to 15 months since the start of the coronavirus pandemic.
- May sales (11,951 were orders of magnitude higher than last year– and were the 2nd highest ever for the month of May on TRREB
- The ratio of sales-to-listings settled back somewhat to 97.5% in May– leaving us still in extreme seller market territory
- The May average sale price came in at a record $1,108,453– 28.4% above one year ago and 32.2% above the May average in 2019.
- The GTA real estate market overall averaged a quick 11 days-on-market
- Detached home sales in May 2021 with a purchase price over $2,000,000 were up a big 525% (719 houses) while condo apartment sales over $2M also increased by a more moderate 129% (16 suites) compared to May 2020
- The CONDO townhouse / highrise share of the market came in at 30.8% during the month
- Downtown condo active listing numbers were UP by 12.3% in C01 and by 37.7% in C08 from last month
- May year-over-year downtown condo sales were up by huge numbers in C01 and C08 compared to 2020 of course with record sale numbers in both TRREB districts
- The downtown condo days-on-market average stayed at 13 days (C01) & 12 days (C08)
- Reversing the trend seen in the past several months, the ratio of sales-to-listings for condos downtown moderated slightly in C01 to 66.4% and in C08 to 57.8% leaving both condo districts in busy seller market territory
- Because of the influence of higher inventories due to lower tenant demand, lower immigration into Toronto and restrictions on Airbnb rentals, the adjusted average condo sale price showed a decline of 4.4% in C01 and lower by 3.3% in C08 from May 2020. Both areas are up 4-5% however from May 2019
- Despite the doom and gloom you see in the media about the combination condo townhouse and high-rise suite market, May continued the recovery for condo sales – 3rd highest sales ever in C01 and highest-ever May condo sales in C08
- May saw detached homes in the 905 appreciate year-over-year by an average 41% and 905 condominium average sale prices rose by a big 202%
- New June 1st Mortgage Stress Test qualifications will slow the market slightly as buyers reevaluate their mortgage approvals and what their financial situation looks like