The total number of home sale transactions in the Greater Toronto Area decreased in May 2021, as a tighter market pushed the average selling price in the region to an all-time high.
New figures from the Toronto Regional Real Estate Board (TRREB) showed that total sales transactions in May declined 13% month-over-month to 11,951 from April’s 12,663 – with the City of Toronto seeing 4,118 transactions.
Read more: What’s driving up real estate prices in Toronto?
Despite the decrease in transactions, the average home price in the GTA still increased by 1.1% in May 2021 to a record $1,061,987.
The City of Toronto recorded the highest average price last month at $1,116,736, while the rest of GTA saw the average house price increase to $1,104,098.
John DiMichele, chief executive officer of TRREB, blamed longstanding supply issues for the tighter market.
“The housing supply shortage in southern Ontario has been well documented,” said DiMichele. “Policymakers at all levels have acknowledged that supply is an issue. It is important to understand that dealing with this issue will be important not only for ensuring long-term housing affordability, but also the economic competitiveness of the Greater Golden Horseshoe. People and businesses are more likely to locate in regions that have an ample supply of affordable homeownership and rental options.”