by Nutan Brown
on Tuesday, January 11th, 2022 at 12:35pm.
Despite continuing waves of COVID-19, demand for ownership housing sustained a record pace in 2021 both in terms of sales and prices.
According to a new TRREB report, 121,712 homes were sold last year which represents a 28% jump from 2020 and a 7.7% increase compared the previous 2016 high of 113,040.
This increase in listings wasn’t enough to meet the demand for sales and the lack of inventory affected all home types, creating fierce competition among buyers and pushing prices up.
The result was extremely tight market conditions and an all-time high average selling price of $1.1 million — an increase of 17.8% compared to the previous 2020 record of $929,636.
“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 chief market analyst Jason Mercer.
Last year also saw renewed demand for homes in Toronto due in part to the resurgence of the condo market. Sales grew 36% annually inside the city’s border, compared to 24% in the surrounding GTA.
The real estate board will release its annual Market Outlook report on Feb. 3, outlining its expectations for demand, sales and prices for the coming year.
Stay tuned for our breakdown of the market report and get in touch if you have any questions!