Toronto | GTA Region Housing & Real Estate Market - May 2023

The Greater Toronto Area (GTA) real estate market continues to wobble precariously between escalating sales and a persistent inventory shortage. According to the Toronto Regional Real Estate Board (TRREB), May 2023 saw an appreciable 24.7% year-over-year increase in home sales, shadowed by an 18.7% decrease in new listings. This sales surge, juxtaposed with the substantial drop in listings, continues to tighten the grip on prices in the market.

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While sales improved 5.2% month-over-month in a seasonally adjusted comparison with April 2023, the numbers still languish below average for this time of the year.  The resulting market contraction saw the months of supply decreasing, placing additional pressure on home prices. This has landed on an unadjusted benchmark price across the TRREB market area of $1,196,101 in May, a slight 1.2% decline from May 2022 but a 3.5% increase in a seasonally adjusted comparison with April 2023.

Higher interest rates have led to a more limited supply and strong demand. The average home price for May 2023 was nearly $1.2 million, a minor decrease of 1.2% from the previous year but a notable increase on a seasonally adjusted monthly basis.

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In terms of regional differences, home prices in the City of Toronto have seen a remarkable surge, rising 7% from last month, building on the prior month's 6% growth. The average price for a home in Toronto now stands at $1,197,021 as of May 2023, notably strong compared to other areas in the Greater Toronto Area (GTA). Despite these substantial monthly hikes, there's been a 3% decrease in Toronto's home prices compared to the previous year, underlining the hefty losses homeowners in the city have experienced over the last year. However, this speedy rebound in prices might be encouraging news for some.

Brampton's average home price is $1,111,067, with a modest 2% growth from the previous month. This growth is lagging compared to Mississauga, where home prices have shot up by 6% month-over-month to an average of $1,140,328. This contrasts sharply with Brampton's performance in 2022, when it saw a dramatic increase and subsequent drop in home prices, outdoing many neighboring areas in the GTA housing market.

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In the York Region, encompassing areas like Markham, Vaughan, and Richmond Hill, home prices have seen a modest 0.5% month-over-month increase, reaching an average of $1,369,724. This also translates to a 1% annual price increase, a scarce occurrence of year-over-year growth. In contrast, the Halton Region, comprising Burlington, Oakville, and Milton, saw a 1% drop in prices from the previous month to an average of $1,273,198. Lastly, Durham Region's housing market, including Oshawa, experienced a 3% month-over-month price increase, with an average price of $855,682.

As of May 2023, the average cost of a detached home in the Greater Toronto Area (GTA) stood at $1,556,566. This represents a half-percent increase from the previous year and a 4.5% surge compared to the month prior. The average price for semi-detached homes was $1,198,185, a drop of 0.5% year-over-year, despite an increase of 5.5% from the previous month. This decrease denotes the most significant price reduction for the month.

The average value of freehold townhouses amounted to $1,117,696, an increment of 5% year-over-year and a 2% rise from the previous month. These figures indicate that freehold townhouses are nearing a return to positive year-over-year price change and have seen the greatest annual growth among all property types in Toronto's housing market. Conversely, the average cost of condos was $748,483, a decrease of 3% from the previous year, although they experienced a month-over-month increase of 3%.

The market remains strained by a chronic inventory shortfall, despite the recent resurgence in sales. The number of new property listings in the Greater Toronto Area (GTA) fell by 18.7% year-over-year in May 2023, resulting in an active listings tally below desirable levels.