Despite a weaker December, Toronto home sales lead to a record in 2021!
By Digital Aptech - Jan 14,2022
Despite a dip in December, there was a revival in demand for Toronto homes and that contributed to record residential real estate sales and prices in 2021. Recently, a record of 121,712 homes were sold through its MLS system which increased by 28 percent when compared to 2020 and 7.7% above the previous 2016 with 113,040 homes as per the reports by The Toronto Regional Real Estate Board (TRREB). In view of the fact that new listings didn’t keep pace with sales, the average selling price has been set up to a peak of $1.095 million, which is up 17.8% from the previous year which was at $929,636. TRREB president Kevin Crigger said that extremely low borrowing costs and job creation contributes to the sales group and also stated that despite the continuation of the COVID-19 waves, the demand for ownership housing still managed to sustain a record pace in 2021. He also made another statement saying that these factors not only supported a continuation in demand for ground-oriented homes, but also a revival for the condominium domain as well.
The city of Toronto surged 36.8% driven by the demand for condos with overall sales in the 416 area code. During the time, sales in the surrounding Greater Toronto Area Suburbs rose to 23.6%. TRREB chief market analyst Jason Mercer added that the rigid market conditions prevailed throughout the Greater Toronto Area as well as the broader Greater Golden Horseshoe in the year 2021, along with decline in inventory noted among all home types. He also added that this led to intense competition between buyers which pushed up selling prices by double digits year after year. The past has shown the taking of additional taxes on foreign buyers and principal residences breaking down to be a solution. So he concluded that the only way is to add the supply of homes in order to moderate the price growth. December sales decreased by 15.7% to 6,031 from the record of 7,154 which was set in December 2020. New listings decreased 11.9% to 5,174 just when the average selling prices increased 24.2% to $1.16 millions.