If you were trying to sell a home in the Greater Toronto Area last month, you likely succeeded. The Toronto Real Estate Board released its Market Watch update on home sales in the GTA and found that sales in the month of May were the best on record.
“Total sales in the Greater Toronto area as a whole were up by a little bit more than 11%, so 11, 079 versus 9, 946 last year at the same time.” Said Jason Mercer, the Senior Manager for Market Analysis at the Toronto Real Estate Board.
The average selling price for homes in the GTA were also up 8.3% in May to $585,204 from $540,544 the previous May.
A detached home in Toronto sold for $965,670 on average, while the average price of a detached home in the 905 went up 13% to $648,439.
Condominium sales were also up in the GTA by 8.4% this May over May of 2013. Mercer says this is likely caused by the lack of new listings and low level of inventory.
“I think there are a few factors that feed into that. Number one, if you look at the years leading up to the recession, we are actually seeing sales on a per capita basis above the long-term trend. So people have sort of pulled forward their decision to buy and so some of those households simply aren’t ready to list their homes again. And so that’s lead to a shortage of listings.” said Mercer.
Mercer said the lack of new construction, as well as the City of Toronto’s land transfer tax are also forcing people to reconsider their plans to sell.
“Third party research and polling has actually suggested that some people when faced with large upfront costs will consider renovating rather than moving.” said Mercer.