May 2021 real estate sales continued the ongoing story of tight demand and strong price gains in the GTA market. Although the number of sales in May declined for the second month in a row since the March 2021 peak, activity was still above pre-pandemic levels as well as the 10 year monthly average for this period. The 17% reduction in new listings compared to April was reflected in the 19% increase in the MLS® Home Price Index Composite Benchmark in May. Along with other economists, RBC’s Robert Hogue expects this intense upward price pressure to persist in the near term. Condo sales showed a noteworthy comeback from the standstill a year ago and some months of price depreciation that followed. The 9.1% average price increase in May could be the beginning of a market rotation into the high rise condo segment. Condo construction wasn’t slowed by the pandemic, and Urbanation’s Shaun Hildebrand predicts that condo sales in the 416 will be the story of 2021.
Full report with breakdown available upon request.