Greater Toronto Area home prices were up by almost 25% in 2021 amidst Covid 19 and low inventory. As per the new numbers by TREB, a record 121,712 sales were reported. These numbers were 28 higher than 2020.
“Despite continuing waves of COVID-19, demand for ownership housing sustained a record pace in Growth in many sectors of the economy supported job creation, especially in positions supporting above-average earnings. 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,” said TRREB President Kevin Crigger.
“Tight market conditions prevailed throughout the GTA and broader Greater Golden Horseshoe in 2021, with a lack of inventory noted across all home types. The result was intense competition between buyers, pushing selling prices up by double digits year-over-year. Looking forward, the only sustainable way to moderate price growth will be to bring on more supply. History has shown that demand-side policies, such as additional taxation on principal residences, foreign buyers, and small-scale investors, have not been sustainable long-term solutions to housing affordability or supply constraints,” said TRREB Chief Market Analyst Jason Mercer.
One sales trend that stood out in 2021 compared to 2020 was the resurgence in demand for homes within the City of Toronto. Overall sales in the “416” area code were up by a substantially greater annual rate (+36.8 per cent) compared to sales growth for the surrounding Greater Toronto Area (GTA) suburbs combined (+23.6 per cent). The marked recovery in the condominium apartment segment was a key driver of this trend.
Highlights:
- The average Selling price is at all-time high of $1,095,475 – an increase of 17.8% compared to the previous 2020 record of $929,636.
- A record 121,712 sales were reported through TRREB’s MLS® System in 2021
- The year 2016 had previously recorded all time high sales of 113,040 which was shattered in 2021.
- Condominium sales were also high this year compared to drop in 2020
- The MLS® Home Price Index Composite benchmark was up by 31.1 percent year-over-year in December.
- The average selling price was up by 24.2 percent annually to $1,157,849.
- Detached homes showed a growth of 28.8% in 2021 in the GTA compared to 2020
- Semidetached were up 25.6% as compared to 2020
- Townhouses were at 29.4%
- Condo apartments sales resurged at 18.5%
- Durham Region recorded the highest growth of 42.33% while City of Toronto was lowest at 23.23%. Peel region showed a growth of 33.39%