Yukon Weekly

Despite a weaker December, Toronto home sales are on track for a record

Toronto home sales are on track to set a new high in 2021.

Key takeaways:

  • Despite a dip in December, a resurgence in demand for Toronto homes helped to propel residential real estate sales and prices to new highs in 2021.
  • As new listings didn’t keep up with sales, the average selling price reached $1.095 million, up 17.8% from the previous year’s high of $929,636.

Despite a dip in December, a resurgence in demand for Toronto homes contributed to record residential real estate sales and prices in 2021.

The Toronto Regional Real Estate Board announced on Thursday that it sold a record 121,712 homes through its MLS system last year, up 28% from 2020 and 7.7% higher than the previous high of 113,040 in 2016.

As new listings didn’t keep up with sales, the average selling price reached $1.095 million, up 17.8% from the previous year’s high of $929,636.

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“Demand for ownership housing maintained a record pace in 2021, despite continuing waves of COVID-19,” TRREB president Kevin Crigger said.

He credited the rise in sales to creating jobs and the availability of extremely low-cost borrowing.

“These factors contributed to a resurgence in the condo segment as well as a continuation of demand for ground-oriented homes.”

Overall sales in Toronto’s “416” area code increased 36.8%, owing to strong demand for condos, while sales in the Greater Toronto Area suburbs increased 23.6 percent.

Toronto home sales are on track to set a new high in 2021.
Toronto home sales are on track to set a new high in 2021. Image from BNN

According to the report, “tight market conditions prevailed across the GTA, and the Greater Golden Horseshoe in 2021, with a shortage of inventory noted across all home types.” “Selling prices rose by double digits year over year as a result of the intense competition between buyers,” TRREB chief market analyst Jason Mercer added.

He believes that the only way to slow price rises is to increase housing supply, as additional taxes on primary residences and foreign buyers have proven to be ineffective in the past.

In December, sales fell 15.7 percent to 6,031 from a high of 7,154 in December 2020.

New listings fell 11.9 percent to 5,174, resulting in a 24.2 percent increase in average selling prices to $1.16 million.

Source-CTV News

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