The TRREB home sales report May 2021 figures surprised many hopeful buyers. Contrary to what many wished for, the real estate market continued its upward flight through May 2021. Here is what the numbers showed and what they meant.
This post was first published on June 3, 2021. The figures below are from that month.
Key numbers from the sales report — May 2021
The Toronto Region Real Estate Board (TRREB) released its latest numbers in early June. The sales report — May 2021 showed a slight adjustment in overall transactions, which were down by about 9%. However, the sales price continued its upward trend. It rose by over 1% compared to the month before, April 2021.
Next, compare the sales price with the same month last year, May 2020. The jump was a whopping 28.4%. Of course, May 2020 was the first spring of the pandemic, so the market was unusually quiet then.
Still, a gain that large tells you how strong demand had become. In short, fewer homes changed hands, yet each one sold for more. That pattern often appears when buyers compete for a limited choice of homes.
Keep in mind that an average price is a simple average of all sales. A few large sales can pull it up, and a few small ones can pull it down. So it is best to read it next to the number of sales. Together, they give a fairer picture of the month.
Why more listings did not cool the market
New listings roughly doubled compared with May 2020, while sales rose about 160%, according to TRREB. With so many more homes for sale, one would expect a relaxed competition. You might also expect some cooling of the pressure. Instead, it worked the other way around.
There were 14% more sales compared to available properties for sale than last year. The reason could be the start of COVID-19 the year before, and the full year of the pandemic since then. In other words, buyers who had waited came back in force.
Similarly, homes sold in less than half the time they took in the same month last year, 53.1% less, to be exact. So in the sales report — May 2021, a property stayed on the market for an average of 15 days. A year earlier, it took 32 days.
For buyers, a short selling time meant little room to think. Many had to decide within days of the first showing. That is why preparation mattered so much. Buyers with their financing, their must-have list and their budget ready were able to move with far less stress.
The new mortgage stress test and what came next
The Office of the Superintendent of Financial Institutions (OSFI) tightened the mortgage stress test, starting from June 1, 2021. The stress test asks borrowers to qualify at a rate higher than the one they actually pay. As a result, a tougher test can lower the amount some buyers can borrow. At the time, we still needed to see its impact on the overall market. So far, there did not seem to be any dent in housing prices.
Two factors remained behind the heated market. First, mortgage rates were at historic lows. Second, new immigrants were expected to come into the country as soon as flights opened and quarantine rules relaxed. Both factors pointed to more demand, not less.
You can read about how rates are set on the Bank of Canada website. Rates have moved a great deal since the sales report — May 2021 came out. For that reason, always check today’s rate before you plan a purchase.
What the sales report — May 2021 means for buyers and sellers
Looking back, this report shows how fast conditions can change. It also offers lessons that still apply:
- Buyers should get a pre-approval before they start, so they can act with confidence.
- Sellers should price for today’s market, not last year’s headlines.
- Both should watch the days on market. It is a simple sign of how hot or cool things are.
- Everyone should read each monthly report as one piece of a bigger trend.
Also, remember that the GTA is not one market. Prices and selling times in Mississauga can differ from those in Toronto, Brampton or Oakville. Even two streets in the same city can behave differently. So ask for recent sales close to the home you want, and base your offer on those.
To follow the story, read my breakdown of the TRREB report for June 2021 and the report for July 2021. For a current view, see my fall 2026 guide for GTA buyers. Every figure in the sales report — May 2021 belongs to its time, but the habits of smart buyers stay the same.
To see TRREB’s full May 2021 home sales report, open the TRREB Market Watch PDF. You can also visit TRREB’s website for newer reports.
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Talk to a Mississauga real estate agent
Do you have questions about buying, selling or planning your next move? I am happy to help. You can reach me through my contact page or call me directly at 416 908 5600. A. Q. Mufti, Sales Representative, RE/MAX Real Estate Centre Inc., Brokerage.
Disclaimer: this article was published on 18 January 2025 and reflects the information available at that time. Interest rates, prices, and government programs change, so check the current position before acting on anything here. It is provided for information only and is not financial, mortgage, tax or legal advice. A. Q. Mufti is a registered Sales Representative with RE/MAX Real Estate Centre Inc., Brokerage, Ontario, Canada.
