There were 10,850 transactions through the Toronto MLS system on May 2012, an 11% increase over the 9,766 sales in May of 2011.
"Sales growth in the '905' area code was stronger than growth in the City of Toronto across all home types. While lower average prices are certainly one factor that has contributed to the trend, recent polling also suggests the City of Toronto's land transfer tax has also prompted many households to look outside the City for their ownership housing needs." said TREB President Richard Silver.
New listings were up substantially on a year over year basis in May, rising by more than 20% to 19,177. The average price for May 2012 sales was $516,787, representing an annual increase of 6.5% compared to $485,362 in May of 2011. Price growth continued to be driven by the low-rise market segment.
"Strong competition between buyers seeking to purchase low-rise homes drove strong price growth in May. However, if new listings continue to grow at the pace thay did in May for the remainder of 2012, the annual rate of price growth should begin to moderate on a sustained basis," said Jason Mercer, TREB's Senior Manager of Market Analysis.