May 2023 Market Update

From a sales perspective, the Greater Toronto Area housing market continued to improve in May 2023. However, the supply of homes available for sale did not keep up with the demand for home ownership. Competition between buyers has increased substantially compared to the same time last year, bringing the average selling price in the GTA to $1,200,000.

Despite the recent positive policy direction by the Bank of Canada, housing supply continues to be a major issue that is contributing to unaffordability for buyers. May 2023 saw a 24.7% increase in sales compared to May 2022, but new listings were down 18.7% over the same period. It is clear that the demand for home ownership has increased dramatically in recent months, as homebuyers have recalibrated after many interest rate hikes and are moving back into the market.

Strong rent growth combined with record population growth and immigration in the Greater Toronto Area also continues to put upward pressure on home prices.