Average home price in GTA ticked up in May as demand continues to outpace supply: TRREB

The increase was led by gains in Greater Vancouver and Vancouver Island, the Greater Toronto Area, London and St. Thomas, Ont., and Barrie, Ont. (File image)

The average selling price of a home in the Greater Toronto Area ticked up again last month as supply continues to lag behind growing demand, the Toronto Regional Real Estate Board says.

Numbers released by TRREB on Friday show the average price of a home reached $1,196,101 in May compared with $1,153,269 recorded the prior month. Although, last month's figure was down 1.2 per cent from $1,210,372 the same time the previous year.

The TRREB said 9,012 home sales were reported through its MLS system last month – an increase of 24.7 per cent from the 7,226 sold a year ago. Most of the properties bought were detached homes (4,049) followed by condo apartments (2,568), townhouses (1,217) and semi-detached (787).

Meanwhile, 15,194 new properties were put on sale in May – down by 18.7 per cent over the same period. In May 2022, there were 18 687 new listings.

"The demand for ownership housing has picked up markedly in recent months. Many homebuyers have recalibrated their housing needs in the face of higher borrowing costs and are moving back into the market." TRREB Chief Market Analyst Jason Mercer said.

"In addition, strong rent growth and record population growth on the back of immigration has also supported increased home sales. The supply of listings hasn't kept up with sales, so we have seen upward pressure on selling prices during the spring."

The average price of a detached home in the GTA last month was $1,556,566, while semi-detached houses were sold for an average of $1,198,185. The average price of a townhouse jumped by three per cent last month to $1,003,152.

The cost of a condo apartment saw a three per cent decline in May to $748,483.

TRREB President Paul Baron warned that if the housing supply does not catch up, the economic development of the GTA will be hampered ad people and businesses will look elsewhere to live and invest.

"Despite the fact that we have seen positive policy direction over the last couple of years, governments have been failing on the housing supply front for some time," Baron said.