May 2015: Prices Keep Increasing

One Block Queen Street East by Marc Falardeau
One Block Queen Street East by Marc Falardeau

May has passed and the weather is getting warmer and warmer. It just makes you want to spend the day outside, maybe in a park with kids or pets and maybe an ice cream cone. And just like the temperatures are on the rise, so is the real estate market.

May 2015 Real Estate Market Report Infographic

This year’s trend of increasing number of overall sales in Greater Toronto Area has remained unchanged during May. This month it was 11,706 in comparison with last year’s 11,079, which is a 5.66 per cent increase. The high number of sales has also lowered the stock and the combination with the ongoing high demand for all major housing types pushed the average price up by solid 11 per cent - from last year’s $585,204 to $649,599 this month. Just for the illustration of the high demand, the number of active listings has dropped by 10.13 per cent since May 2014.

Tight market conditions, especially for singles, semis and town homes in the GTA, have resulted in strong price growth regardless of the price metric being considered. With no relief so far on the listings front, expect similar rates of price growth as we move through the remainder of 2015. At this point, a number of months where listings growth outstrips sales growth would be required to satisfy pent - up demand,”

said Jason Mercer, the Director of Market Analysis of Toronto Real Estate Board.

It might be early for such calculations, but the continuing trend of increasing prices will probably last for the whole year and 2015 could be really breaking the records. By the way, despite the lowering stock there is still plenty of opportunities to buy a beautiful new home, so feel free to contact our team. We'll be more than happy to help.

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