toronto-home-price-record-may Photo: James Bombales

Sales activity is cooling down from the peaks reached earlier in the year, but Toronto home prices are continuing to soar as demand remains well above current supply levels.

The average sale price for a Toronto region home hit a record $1,108,453 in May, up 28.4 percent from a year earlier and 1.1 percent on a monthly basis, according to data published this week by the Toronto Regional Real Estate Board (TRREB).

Last month’s sales total, at 11,951, was below May 2016’s total, which is the current record-holder for the month. It was also considerably lower than transaction levels recorded in April and March.

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“While sales have trended off the March 2021 peak, so too have new listings. This means that 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,” said TRREB Chief Market Analyst Jason Mercer in a media release accompanying the new data.

“This competition is becoming more widespread with tighter market conditions in the condominium apartment segment as well,” he added.

Commenting on the latest TRREB data, RBC Senior Economist Robert Hogue wrote that fierce competition for properties across the region was still giving home sellers the upper hand, even if bidding wars are attracting fewer participants.

“In short, conditions for strong price gains remained firmly in place,” wrote Hogue.

Broken down by property types, Toronto region detached homes hit an average sale price of $1,415,698 in May, up 37 percent from the previous year. The average condo price jumped over nine percent to $682,280, with suburban “905” properties experiencing higher price growth than urban “416” properties. However, condos located in the city continued to see solid price increases after spending a long stretch recording declines due to oversupply and a shift in buyer preferences.

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