A lack of inventories, seemingly insatiable demand for property and low borrowing costs pushed property prices and sales to record highs in the Toronto region in 2021, according to the Toronto Regional Real Estate Board (TRREB).
Average house prices continued a streak of monthly double-digit increases right up until the end of the year, rising 24.4 percent year-over-year in December to an average of $ 1.16 million for condominiums, townhouses, semi-detached houses and detached houses. reported Thursday.
There were 121,712 transactions over the whole of last year – a jump of 28 percent compared to 2020 – which exceeded 2016’s record of 113,040 sales by 7.7 per cent.
An annual increase of 6.2 percent in inventories was not enough to meet the demand for sales, the real estate agency said.
“The result was extremely tight market conditions and a record-high (annual) average selling price of $ 1.1 million – an increase of 17.8 percent compared to the previous record in 2020 of $ 929,636,” it said.
Last year also saw renewed demand for housing in the city of Toronto, in part due to the resurgence of the condominium sector. Sales grew 36.8 percent annually within the city limits, compared to 23.6 percent in the surrounding GTA, according to TRREB.
The lack of fixtures affected all housing types in the GTA and the wider Greater Golden Horseshoe, creating fierce competition among buyers and pushing prices north, chief market analyst Jason Mercer said.
Looking ahead, the only sustainable way for moderate price growth will be to create more supply. History has shown that demand-side policies, such as additional taxation of main homes, foreign buyers and small investors, have not been sustainable long-term solutions to affordability or supply constraints. ,” he said.
A 12 percent year-on-year decline in new listings last month was reflected in double-digit price growth. December’s 6,031 sales were relatively strong for the last month of the year, but remained 15.7 percent below December 2020’s 7,154 sales.
The average selling price of ground-floor homes – detached, semi-detached and townhouses – rose more than 33 percent year-over-year in the 905 areas around Toronto in December. In the city, these homes experienced price increases of 14.9 percent, 15.7 percent and 18.3 percent, respectively, over the same period.
A detached house in Toronto was sold for nearly $ 1.7 million in December compared to about $ 1.6 in the 905 area. Condominium prices also rose again last month outside Toronto, rising 23.4 percent year-over-year to $ 667,269 on average. In the city, the average price for resale of apartments was $ 730,792, an increase of 16.8 percent from December last year.
During 2021, apartment prices rose 8.2 percent annually in the Toronto region to an average of $ 681,218. The average selling price of a detached house in GTA rose 25 percent to about $ 1.44 million last year.
The Property Board will release its annual market outlook report on February 3, outlining its expectations for demand, sales and prices for the coming year.