The number of GTA home sales that occurred last month set a new May record, reports the Toronto Real Estate Board (TREB). The 11,706 sales tracked through TREB’s MLS® System marked a year-over-year increase of 6.3 per cent. This increase was felt across all housing types in the TREB market area, except for detached homes in the City of Toronto, where low-rise sales have been limited by listing supply.

“It is clear to me that ownership housing remains top of mind as a quality long-term investment for GTA households,” said TREB president Paul Etherington. “This is why, despite a shortage of listings in some market segments, we experienced a record number of sales reported through the TREB’s MLS® System for the month of May.”

Home prices also rose in May, propelled by the convergence of lower supply and record transactions. The MLS® Home Price Index (HPI) Composite Benchmark, which controls for changes in the mix of sales activity, shot up 8.9 per cent, year over year. The average selling price across all home types inched up ever higher, to $649,599, representing an increase of 11 per cent, year over year. The difference between these two measures of changes in home prices tells the story of how 2015 has seen more high-end home sales than 2014.

“Tight market conditions, especially for singles, semis and townhomes in the GTA, have resulted in strong price growth regardless of the price metric being considered,” said Jason Mercer, director of market analysis for TREB. “With no relief so far on the listings front, expect similar rates of price growth as we move through the remainder of 2015.”

The 2,519 condo apartment sales that occurred across the GTA in May marked a year-over-year increase of 13.2 per cent. The average price of a condo apartment in the GTA also increased, by 5 per cent, to $391,901.