Toronto Market Heating Up Further in May

Prices for both houses and condos are continuing to accelerate upward in May as the very strong spring market continues in Toronto. Summer is right around the corner and, if past is prologue, we may see some leveling off over the next month or so followed by a somewhat slower market in July and August.

Houses (detached/semi-detached/attached)

The rising prices this year have caught up with the falling prices at this time last year. By next month, 2023 prices will probably be ahead of last year, and the gap should continue to widen for at least the next 2-3 months.  This sort of ‘crossover’ in the price trend is, of course, extremely rare. It’s symptomatic of the volatility that’s been with us since Covid began.

The inventory of houses for sale was about the same in April as it was in March. This hints once again that we are nearing peak activity for this year and may see a bit of a slowdown over the next 2-3 months. Curiously, the inventory in March was almost exactly the same as last March, mirroring the price chart.

Condominium Apartments

The trend for condos is similar to houses. As for houses, condo prices in May have caught up with last May, and a similar ‘crossover’ will probably keep condo prices above last year for at least a few months. The normal summer slowdown may keep prices from going much higher, however.

The inventory of condos for sale is following the same trend as houses. The inventory for April is about the same as in March, and exactly equal to last March. This is more evidence that a ‘leveling off’ of the condo market is in the cards for the next few months, similar to houses.

Bottom Line

The Toronto market has been getting stronger every month since January. However, we will probably see some slowing and leveling off over the next few months.