Canada sees Toronto home sales surge as prices dip, manufacturing PMI shows modest growth

In May, Greater Toronto Area home sales rose 10% to 5,364 units, the biggest monthly gain in ten months, while the home price index slipped 0.2% to C$927,800. Year‑over‑year sales were up 6.3% but new listings fell 18.9% and the price index declined 6.7%. Board president Daniel Steinfeld said the increase reflects “improved affordability stemming from lower selling prices and borrowing costs.”

Canada’s manufacturing sector expanded for a second straight month, with the S&P Global Canada Manufacturing PMI easing to 52.9 in May from 53.3 in April but staying above the 50 expansion threshold. New orders fell slightly to 53.9, while the employment component rose to 51.1, the highest since October 2024. Input and output price indexes reached their highest levels since July 2022, driven by higher fuel costs linked to the Middle East war. The sector’s growth is attributed to firms stockpiling goods amid concerns over price increases and product availability.