Greater Toronto real estate prices increased, but sales are the headline story. Toronto Real Estate Board (TREB) numbers show prices increased in May. Sales of Toronto real estate posted a huge double digit gain, soaring above last year’s numbers. Unfortunately, as noted by the board itself, these sales numbers still fall short of a typical May.
Toronto Real Estate Prices Rise Over 3%… Due To Condos
The price of a typical (a.k.a. benchmark) home increased, due largely to condos. TREB reported a composite benchmark price of $794,800 in May, up 3.11% from last year. The City of Toronto composite benchmark reached $879,300, up 4.71% from last year. Condos saw prices grow at almost double this rate, while detached homes failed to even meet CPI. Considering detached housing represents nearly 50% of sales, they dragged the composite down.
Greater Toronto Benchmark Price
The price of a “typical” composite home across Greater Toronto.
Source: TREB. Better Dwelling.
The annual rate of growth continued to slow across the region. Both TREB and The City of Toronto benchmarks reported smaller annual growth. A couple of points also worth remembering are seasonal adjustments and annual revisions. Seasonal adjustments add a positive bias to May numbers, with that bias typically disappearing in June. Also, CREA boards conduct an annual review and revision in May. It’s unclear if these benchmark numbers released are pre or post revision.
Greater Toronto Benchmark Price Change
The annual percent change of TREB’s benchmark price for all home types.
Source: TREB. Better Dwelling.
The median sale price of homes across Greater Toronto made a substantial jump. The median sale price across TREB reached $725,000 in May, up 5.83% from last year. The City of Toronto median sale price hit $753,000, up 9.13% from last year. Both numbers are making a similar move as the benchmark. Condos are once again, largely responsible for this push higher.
The average sale price also made a pretty big jump across Greater Toronto. TREB’s average sale price reached $838,540 in May, up 3.61% from last year. The City of Toronto hit $937,804, up 7.84% from last year. The average increase was, once again, due to a jump in condo prices, and the rising price floor that comes with. Are you sensing a trend here?
Greater Toronto Average Sale Price Change
The annual percent change of the average sale price of all homes.
Source: TREB. Better Dwelling.
Toronto Real Estate Sales Rip Higher, But Still Below Normal
Greater Toronto real estate sales jumped higher than last year’s unusually low number, but still fell short. TREB reported 9,989 sales in May, up a massive 18.88% from last year. The City of Toronto represented 3,715 of the sales, up 13.12% from last year. The board itself noted this is 3.61% below the 10 year average for the month of May. That would make it the second fewest May sales since 2010. Big jump, not enough to change the volume issue, which typically means less sticky prices.
Greater Toronto April Home Sales
The total home sales across TREB by year, for the month of April.
Source: TREB. Better Dwelling.
Inventory Falls In The Suburbs, Rises In The City
The number of new listings experienced mild growth across the board. TREB reported 19,386 new listings in May, up 0.77% from last year. The City of Toronto represented 6,648 of those new listings, up 4.00% from last year. The City is seeing more new listings than the 905, which helped push total inventory higher.
Greater Toronto Sales To New Listings
The number newly listed units per month, in contrast to sales.
Source: TREB. Better Dwelling.
The number of total homes listed for sale fell across Greater Toronto, but increased in the City. TREB reported 20,017 active listings in May, down 4.31% from last year. The City of Toronto represented 6,039 of those listings, up 4.17% from last year. Once again, the City is seeing inventory rise faster than the 905. Total active listings for May were the second highest since 2014, but still increased slower than sales.
Greater Toronto April Active Listings
The total of active home listings across TREB by year, for the month of April.
Source: TREB. Better Dwelling.
Toronto real estate saw higher prices, sales, and a mixed movement in inventory last month. Prices made modest gains, but were driven by condos – and growth is still decelerating. Sales made a huge jump, but still fell short of the historic normal. As for inventory, it was mixed – with the City of Toronto posting higher numbers. The last point is more interesting if you consider weak absorption for pre-sale homes in Toronto.
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Honest issue I’m not getting. I’m in a purpose built rental in a nice neighbourhood. My rent is not even close to what “rental reports” are saying. Did the math on a condo, and while it’s going up 5-6% per year, the increased costs for just interest, taxes, and condo fees eat up those gains. Not even factoring that if something breaks in my rental, no one needs to come and fix it.
Why is everyone paying such high rents, and why do people think condo ownership is such a great investment?
That’s because the vast majority of people aren’t paying new rental fees. That’s a “buy in” rate for housing in the city. If you looked at the census vs market rates, “market” rates are about 50% higher than real rates.
The unfortunate thing is, rental reports don’t have standard methodologies, but during a bubble becomes every amateur’s go to.
I don’t think most landlords are even aware that if you charge market rate, and have month vacant, you’re collecting 8% below market. By charging the lower rate in the first place, you can have a longer-term tenant with less headache and a lower cost of filling it.
Most amateur landlords don’t have a choice, they’re already negative cap.
Agreed – likewise, the price to purchase a home/condo is the buy in rate – the fast majority of people bought their homes years ago. Many couldn’t avoid to pay “today’s” prices.
Uh oh. You know things are going sideways when the board is the one to remind people these sales are higher, but lower than normal.
Lots of dirty money coming in fast from B.C. taps being turned off.Houses that were on the market for past 9-10 months suddenly sold over last 3 weeks.
Dirty money does not fight the trend it just finds somewhere else to go.Neighborhood is in Burlington average house went for 1.5 mill -2.5 mill.2010 sold for 480 000, selling for 1.8 mill now.Burlington is a world class city.Or something is fishy.
Where does this belief come from? If the money was going to flood anywhere it would be Calgary/Edmonton, or Montreal.
Not to another anti-foreign city where a tax is already in place.
Further, this is an identical trend to Vancouver before prices actually started to decline. Go back and read the data from 8 to 16 months ago.
World’s Most Competitive Economies: Canada Falls To Lowest Spot Ever In Rankings
https://ca.finance.yahoo.com/news/world-apos-most-competitive-economies-173918588.html
Canadians don’t have what it takes to compete. This is why we absolutely need a big housing bubble and masse migration. The only thing we have left now is the housing market and masse migration. Talented people are not coming to Canada. Once the housing bubble collapse in Canada, you will see reverse masse migration. You will see people leaving Canada. Canadians are mediocre people. People where making fun of me in high school and college because I like science and I love studying things like math. I had to hide my good grades. Canadians like to virtue signal because it is all we have left.
I want to see this Canada die. Mediocre people only deserve mediocrity.
Canada is done. I am not sure why I write this comment. Probably because I am getting dementia as I get older
I think i’ve been saying this for atleast 2 months now….better dwelling always looking to drive the market needs to correct narrative.
comparing Toronto to Vancouver is absolutely foolish and people need to get their head out of the ground. don’t hold your breath on a major correction…Toronto is stablizing and becoming a city for the rich aka manhattan, the bay, London core, hong kong whether we like it or not.
people have the money and are willing pay..the rest of us have to find homes outside of 416 or live a small condo or townhouse.
Jon Snow
1) If you’re right, are you OK with that, or are you gonna do something about it? Londoners, New Yorkers, Angelenos, aren’t going down without a fight god love ’em. Also, San Francisco is profoundly broken and we should avoid being like them at all costs. San Francisco is a fucking disaster.
2) I’m not sure you’re right. New York is New York, London is London, Silicon Valley is Silicon Valley. Toronto is a really good city to live in. But it’s not a global hub for anything. It is a second-or-third tier centre for a few things, but it’s not on the same level as those cities. Bay Street money is more money than I make, but it’s not Wall Street money. Canadian Tech money is ALSO more money than I make, but it’s sure not Silicon Valley Money
Jon snow
“Toronto is stablizing and becoming a city for the rich aka manhattan”
How quant.
Toronto the next Manhatten huh?… They better build a few more subways then…,and tunnels, and expressways, a few REAL jobs that pay like Manhatten might help too…
There are a lot of REAL jobs in Toronto that pay very well….Tech, Finance, Law, Healthcare leading the top. who else do you think is affording all these expensive properties and eating at these restaurants?
Toronto is becoming a city of rich people…why is that so hard for people to grasp?
“There are a lot of REAL jobs in ‘Vancouver’ that pay very well….Tech, Finance, Law, Healthcare leading the top. who else do you think is affording all these expensive properties and eating at these restaurants?
‘Vancouver’ is becoming a city of rich people…why is that so hard for people to grasp?”
A different take on your comment, Jon. I feel like the same thing, with the word Toronto replaced by Vancouver, could have been written about Vancouver 4 years ago.
Talented people are not coming to Canada. If talented people were coming to Canada we would see in some stats.
This news proves that talented people are not coming to Canad. If talented people were coming to Canada we would not have a decrease in competitiveness but an increase instead.
World’s Most Competitive Economies: Canada Falls To Lowest Spot Ever In Rankings
https://ca.finance.yahoo.com/news/world-apos-most-competitive-economies-173918588.html
I feel like a loser every-time I wrote a comment. So to avoid this feeling I wrote only two comments a week
I used to think the comparisons to torontovs nyc are obcene, as wall st etc salaries are another stratosphere higher than toronto, and huge industry.
But if foreign chinese/russian/persian oligarchs just snow wash in canada, incomes in the 6ix dont really matter until the govt becomes openly hostile to foreign capital like vancouver.
As a citizen, I’m already hostile to foreign capital. Also domestic capital.
Jon Snow
You may be right there, but talk is cheap, can you show all of us the REAL stats and data,…so…we’ll respect your “words” a little more? Honestly, just looking for the facts.
I’v read a lot of silly stories about how tech workers in T.O say they are vastly under paid for the cost of living in the City. Even doctors say they don’t make enough…
Just wondering,…what would a family have to make to own/rent a 2 bedroom in T.O?
Can anyone else dig some good stats…?
I saw some news reports suggesting traders are expecting a rate cut this year in the US and Canada. Wonder where prices will be once that happens.
Reply
CanadaSucks
Not sure I like your name,… and you may sound like you’ve got a chip…but unlike Mr Snow, you actually copy/link useful real content material.
I read the article and seen the graph, interesting, biggest take away for me,…only Norway and Canada had -3 for productivity. The two lowest…
Know what else they have in common???
HIGHEST HOUSEHOLD DEBT CONNECTED TO REAL ESTATE.
Go figure…Nice to see BOC made the right decision dropping rates to near 0 for a decade+.
I’d like to know what you consider Toronto,get out off Starbucks and take a drive,it’s no world class city.
My take a way from this article is that TREB for now is in control of the bounce. I say this due to the fact winter and early spring numbers were down and dismal and showing all the signs of a horrible 2019..now suddenly at game time the kick off to 2019 sales are off the charts and not as expected even by professional stat people in this field. Either this is by design or a complete coincidence I’m not sure. None the less it’s still to expensive for an average Canadian to live here so..that leaves me to believe TO is only welcoming people with off shore money who are from off shore….but I agree with one of the comments we can not compete in the real world and for sure the RE world will come back to bite us us in the @s$.
Vancouver is nowhere close to Toronto’s job market, I dont even need to provide facts to prove this.
and Vancouvers real estate values were grossly overvalued and still are.
Toronto isn’t near what Vancouver was in terms of affordability crisis in 2017 today, couple that with a much better economy and better immigration numbers the market will stabilize.
regarding facts on incomes…just look at the robert half 2019 salary reports to get an idea of average salaries in tech and finance jobs….im sure there are many other sources but skilled jobs pay well. Majority of jobs with over 5 years experience will earn well over 100k and these are not rocket scientists I’m talking about. this is what university grads will earning after 5 years experience in these fields..this site is full of fear mongering.
hence why I am saying, to live in 416 core you have to be rich or you have dual income 100k jobs minimum….this has been reported everywhere lol. otherwise, you move to the suburbs. I have lived and worked in GTA for over 30 years and seen the city grow from 150k 1 bedroom condos on front st, to 650k condos on the same street. though I dont like the cost of living in Toronto, it is not going to change anytime soon because there are high earners who can afford these places and companies are coming here because there is skilled talent, hence income will continue to increase.
Jon Snow – I want to work where you work – even with multiple degrees and 5+ years of professional experience you won’t make over 100K in the majority of Toronto jobs
“I dont even need to provide facts to prove this.”
But you do though.
This is for all the people that are saying that Canada attract talented people and is a world class city.
Canada is not a world class city nor does it attract talented people. Ask this talented guy what he thinks of Toronto and Canada.
Raptors’ Kawhi Leonard offered free penthouse, food for life to stay
https://www.bnnbloomberg.ca/raptors-leonard-offered-free-penthouse-food-for-life-to-stay-1.1265509
Canada is a third world country. Deal with it.
Lol this was actually funny. You should move to a third world country if Canada sucks.
This makes no sense. I have some spare time tomorrow. I’m going to shove my fist so far up your ass I might as well brush your teeth while I’m at it. I don’t think you understand the blue-nami that is coming. MM ran away, so you’re the only sunshine left in my life. Kisses(all tongue). Make sure you floss first. Tock. BD4L.
Toronto Tech salaries bottom of the ditch, and these are the well paid engineering carriers in metro
http://www.planetweb.ca/news/toronto-tech-salaries-grew-7-last-year-still-fall-way-behind-us/
Cities in Canada, salaries from Global News
https://globalnews.ca/news/3532423/canada-highest-lowest-wages/
5) Toronto, Ont. — $30.40 per hour
7) Regina-Moose Mountain, Sask. — $30 per hour
HaHa! Toronto salaries are the same as Moose Mountain!
Where the hell is that,…near Regina.
I’ll bet houses are expensive there!!!
Toronto incomes as per stats can
https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1110023901&pickMembers%5B0%5D=1.17&pickMembers%5B1%5D=2.6&pickMembers%5B2%5D=3.1&pickMembers%5B3%5D=4.1
Toronto Stats Canada
Aggregate income (x 1,000,000)
$60,292
yikes!!! that will afford a $500000 shoe box
$500,000 mortgage on a $61,000 gross income is an 8 to 1 ratio… rounded to affordability advantage.
Even with 20% down it’s still a 6 to 1 ratio…
I wouldn’t call that affordable lol.
Thank you bringing reality to the conversation. Depressing at best. Tock.BD4L.
So I guess there won’t be any correction just lower growth until the next boom. This perpetual asset value ascent will continue unabated so we need to pile into everything for fear of missing out. It is the only logical conclusion. Stocks, housing, basically any asset will only continue upwards. The fed will do 2 cuts this year, all is good. Debt will not default so you might as well get some BBB Corp bonds. There is a famous quote: sell when there is greed and be greedy when others are selling. I come from privilege so to be honest I am looking at this in 10 year increments which many cannot, I know. The first step of a Ponzi scheme is to make everyone comfortable, give back a little and then fleece for more. When the time is right, boom turns to bust. I have a big fear we are setting the boomer generation and gen x up for one of the biggest assets devaluations in history resulting in debt slavery for our populous. We have too much and letting it be passed on to a liberal, equality based generation means the loss of control for those who want control. As Grizz would say, this is tinfoil hat thinking, but in an age of information we can’t let the populous get the upper hand; the bubble must be normalized, we must be made comfortable in a fake reality before it comes crashing down. I find this quite depressing but my life is great and I benefit in both scenarios so maybe I should just fuck off. Tock. BD4L.
Bunch of whiners and fools on here. The average house is not purchased by the average person. Get used to that concept.
Salary-wise, Toronto area engineering new grads are starting at $70-$80k/yr + bonus + stock and easily clear $100k within a few years max. Stop whining and being a BA basement keyboard warrior and go get some skills that are actually needed these days.
As for ‘Canada Sucks’ – we will gladly show you the door. You obviously don’t know how good you have it – Canada consistently ranks as one of the best places in the world to live. Unless of course you value a good life as low taxes, high income, and gated fences with security to keep the riff raff out. I think Canada is perfect as is. Take off your rose coloured glasses and gain some perspective.
Tom Jones
Are you the singer? Why is statscan lying then? And Global News?
Go ahead please show us the real stats and data? As I always said , talk is cheap. Links please. Thx
I’m pretty sure Tom Jones had a song about bullshitters and how irritating they are.
B.B.B… an old sales approach by salesman with poor math skills called bullshit baffles brains.
If you don’t have time to analyze the facts, sometimes it works. 😊