Sales Pick Up In May

TORONTO, May 17, 2006 -- Resale housing activity in the first half of May was three per cent higher than mid-May a year ago, Toronto Real Estate Board President John Meehan announced today.

In the first half of the month, 4,522 homes changed hands compared to the 4,367 transactions recorded in mid-May 2005. Sales also increased by nine per cent over the first half of last month.

“Activity has picked up in the first half of the month, and overall the spring market is in excellent shape,” Mr. Meehan said. “The stability we are seeing from month to month is very encouraging.”

Home prices also trended upward in the first half of May, with the average price rising about one per cent over mid-April to $369,543. This price is also an increase of six per cent over the $346,704 recorded halfway through May of 2005.

Among the most active pockets of the Toronto Area to mid-month was the Scarborough waterfront area. From Victoria Park to Guildwood, brisk sales of detached homes helped the area see 61 per cent more overall transactions compared to the first half of last May.

Meanwhile in Downsview, a jump in semi-detached home sales contributed to 53 per cent more homes changing hands overall to mid-month, compared to mid-May figures from last year.

Condominium activity was the driving force behind Willowdale’s 42 per cent overall increase in transactions during the first half of the month, compared to the same timeframe a year ago.

According to Ted Tsiakopoulos, Ontario regional economist for the Canada Mortgage and Housing Corporation, condominiums represent a growing component of the housing landscape.

“Rising home prices are encouraging a demand shift towards more modestly priced multi-family homes such as condominiums,” Mr. Tsiakopoulos said.

With Canadian Real Estate Association (CREA) statistics showing that each resale in Ontario generates about $27,000 in economic activity outside of direct transaction costs, sales to mid-month contributed $122 million to the provincial economy through renovations and other activity.

“A home is a great investment,” Mr. Meehan added. “Consumers have good reason to be confident in the Toronto Area market whether they are just starting out or making a switch to a different home.”

Toronto REALTORS® are passionate about their work. They adhere to a strict code of ethics and share a state-of-the-art Multiple Listing Service designed exclusively for REALTORS. Serving more than 23,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada’s largest real estate board.

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* Please note that TREB counts by business or sales days. In a 30 day month, there will usually be about 20 sales days, depending on when the weekends fall, holidays,
and so on.