Toronto's Real Estate Market Broke Records In 2021 & People Still Wanted To Live Downtown
Let's hear it for the 6ix.
Even though living in the 6ix comes with a hefty price tag, Toronto's real estate market in 2021 showed that many people still wanted to have that 416 area code.
According to the Toronto Regional Real Estate Board's (TRREB) market watch report, a record number of 121,712 sales were reported through TRREB's MLS system in 2021. The number of sales rose by 28% compared to 2020.
Since there weren't as many listings on the market, TRREB reports that the average selling price rose to an all-time high of $1,095,475, an eye-watering increase of 17.8% from the 2020 record of $929,636. That's a $165,839 mark-up.
"Despite continuing waves of COVID-19, demand for ownership housing sustained a record pace in 2021," TRREB President Kevin Crigger said in the report.
"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."
TRREB pointed out that many people still wanted to move right in the heart of the 6ix, as sales growth was higher in the 416 area code compared to sales growth in the GTA suburbs.
"The marked recovery in the condominium apartment segment was a key driver of this trend," the report reads.
Based on the report's summary of existing home transactions, 2,395 sales were made in the 6ix, with over half of them in central Toronto.
Peel Region was the most popular suburb in the GTA with 1,236 sales, with 632 of those sales in Brampton. York Region followed at 1,051 total sales, with most of the transactions in Vaughan.
“Tight market conditions prevailed throughout the GTA and broader Greater Golden Horseshoe in 2021, with a lack of inventory noted across all home types," TRREB Chief Market Analyst Jason Mercer said.
"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."