Home prices in the Toronto area continue to spike upward thanks to a shortage of listings and plenty of eager buyers clamouring to get into the market, despite setting a new record for annual sales volume in 2021.
In the latest report by the Toronto Region Real Estate Board (TRREB), it was reported that there were 121,712 sales in 2021, which broke the record of 113,040 from 2016. It could have been much more considering that constrained supply of listings. That shortage of listings pushed the average selling price to an all-time high of $1,049,475 – an increase of 17.8 per cent compared to the previous 2020 record of $929,636.
“Despite continuing waves of COVID-19, demand for ownership housing sustained a record pace in 2021. Growth in many sectors of the economy supported job creation, especially in positions supporting above-average earnings,” said TRREB President Kevin Crigger. “Added to this was the fact that borrowing costs remained extremely low. These factors supported not only a continuation in demand for ground-oriented homes, but also a resurgence in the condo segment as well.”
Month-to-month sales have remained consistent through November and December at approximately 9,500 sales while prices rose 2.5% in the month of December.
Over the past year, TRREB’s MLS Home Price Index showed a 23.23% price increase overall, which represented the least amount of price growth in the GTA. Leading the way was Durham Region up a whopping 42.33%.
TRREB also indicated the recovery in the condominium apartment segment continued and was a key driver of sales growth.
“Tight market conditions prevailed throughout the GTA and broader Greater Golden Horseshoe in 2021, with a lack of inventory noted across all home types,” said TRREB Chief Market Analyst Jason Mercer. “The result was intense competition between buyers, pushing selling prices up by double digits year-over-year.”