GTA housing demand outstrips supply

June 30, 2023



The Greater Toronto Area (GTA) housing market continued to improve from a sales perspective in May 2023, according to the Toronto Regional Real Estate Board (TRREB).
Unfortunately, the supply of homes for sale did not keep up with the demand, TREBB officials said.
“If we don't quickly see housing supply catch up to population growth, the economic development of our region will be hampered as people and businesses look elsewhere to live and invest,” said TRREB president Paul Baron. 
TRREB reported 9,012 sales in May 2023—a 24.7 per cent increase compared to May 2022.
However, new listings were down by 18.7 per cent over the same period. On a month-over-month seasonally adjusted basis, sales were up by 5.2 per cent compared to April 2023.
“The supply of listings hasn't kept up with sales, so we have seen upward pressure on selling prices during the spring,” said TRREB chief market analyst Jason Mercer. The average selling price of a home, at $1,196,101, represented a small 1.2 per cent decline relative to May 2022. On a seasonally adjusted monthly basis, the average selling price was up by 3.5 per cent compared to April 2023. 
TRREB noted the high cost of housing is brought about by a short supply and high borrowing costs while urging municipalities and senior governments to help remove barriers to new home construction.