According to Toronto Real Estate Board (TREB) president Mark McLean, there were 12,870 home sales reported through the MLS system in May 2016, representing a new record for the month and a 10.6 per cent increase over May 2015. However, the number of new listings dropped 6.4 per cent over the same time frame in both the low-rise and condominium apartment sectors.

“Whether we’re talking about existing homeowners or people looking to purchase for the first time, there is no shortage of buyers in the marketplace today,” McLean stated in a press release. “So, while the record number of home sales through the first five months of 2016 is not necessarily surprising, it does sometimes mask the larger story in the GTA: the shortage of listings, which has resulted in strong upward pressure on home prices.”

The MLS Home Price Index Composite Benchmark increased 15 per cent year-over-year in May 2016, while the average selling price for all home types combined was up by 15.7 per cent. The strongest price growth was felt in the low-rise homes segment, as these homes remain in short supply in several regions of the GTA.

“Widespread competition between buyers of singles, semis and townhouses across the GTA has underpinned the robust annual rates of price growth experienced so far this year,” said Jason Mercer, TREB’s director of market analysis. “With this said, however, it is also important to understand that tighter market conditions for condominium apartments have resulted in price growth well above the rate of inflation in this market segment as well.”