RIP millennial homeowners.
If you're a millennial, zoomer, or frankly anybody else trying to purchase an average Toronto home right now, chances are, you'll be handing over a million dollars.
According to Toronto Regional Real Estate Board (TRREB), home prices in the city will climb by 12% this year, with the typical house selling for a whopping $1,225,000.
JUST RELEASED! Download TRREB\u2019s 2022 Market Outlook & 2021 Year in Review to find out what to expect in the GTA RE industry in 2022. \n\nExplore the digital digest for highlights, takeaways and to download the full report https://bit.ly/3up3Rwy\u00a0 \n\n#TRREBOutlookpic.twitter.com/rPuRYNnboe— Toronto Regional Real Estate Board (@Toronto Regional Real Estate Board) 1643914842
"While home sales remained very high in the GTA, home buyers will continue to suffer from a lack of listing inventory. By and large, policymakers have acknowledged that the lack of supply is a major issue impacting our market," Jason Mercer, TRREB's Chief Market Analyst, said on the board's website.
"In 2022, tight market conditions will result in the average selling price increasing by approximately 12% to over 1.2 million dollars," he added.
In 2021, low-rise sales were most substantial in GTA areas surrounding Toronto, with condo sales making up most of the city's real estate sales.
Overall, first-time buyer intentions dipped in 2022.
"When we drill a bit deeper, we find that the dip was driven by lower intentions in the suburban regions surrounding the city of Toronto," Mercer said. "In the '416' area code, polling suggests first-time buyer activity could actually increase compared to last year."
However, Toronto City Council did reveal earlier this week that they would be asking the Ontario government to introduce a home speculation and home flipping tax in the hopes of balancing out the real estate market.
The move aims to prevent home speculators from driving up the cost of housing in Toronto to unprecedented levels.