Key facts
- Greater Toronto Area home sales increased 10% in May from April.
- This marks the largest monthly gain in sales in 10 months.
- The home price index decreased 0.2% month-over-month to C$927,800.
- Year-over-year, sales rose 6.3% while new listings declined 18.9%.
- Improved affordability due to lower prices and borrowing costs was cited as a factor.
Greater Toronto Area home sales experienced their largest monthly increase in 10 months in May, with a 10% rise from April to 5,364 units on a seasonally adjusted basis. This marks the third consecutive month of sales gains. However, the board's home price index saw a slight dip of 0.2% month-over-month, settling at C$927,800 ($670,569.53). This follows a flat reading in April, which had ended a streak of 10 monthly price declines. The board's president, Daniel Steinfeld, attributed the stronger spring sales to improved affordability resulting from lower selling prices and borrowing costs. He anticipates further sales improvements in the latter half of the year, potentially boosted by positive trade news and easing geopolitical uncertainty. On a year-over-year basis, sales were up 6.3%, while new listings fell 18.9% and the price index was down 6.7%. The GTA resale housing market tightened in May compared to last year, with sales increasing year-over-year while new listings declined. Standing inventory has been absorbed, likely increasing buyer competition and potentially leading to price trends flattening and then trending upwards.