Just when you couldn't get any more surprised, the Toronto housing market ended the second year of the pandemic with high sales and an all-time high price record. The average home sold prices increased by 24% year-over-year while sales continue to outpace listings in the market.
Listings hit new low record
According to analyst Ben Rabidoux, the below 100,000 listings is estimated to be the lowest level for-sale inventory for the past 30 years. The lack of inventory is true to all types of homes, resulting to double-digit increase in home prices compared to last year. Although there were policies put in place to curb demand such as additional taxation for foreign buyers and small-scale investors, the only sustainable solution to housing affordability is to increase supply in the market.
Demand for homes continue to surge
The intense competition between buyers was made even tighter as new listings dropped by almost 12% year-over-year. The continued demand is encouraged by the opening of many job opportunities along with low borrowing costs. Aside from detached homes, the condo market has also seen an upturn in demand last year.
Let us take a look at the numbers presented by TRREB in their latest December 2021 statistical update for GTA.
Source: TRREB January 5, 2022
Year-over-year Total Residential Transactions
December 2020 - 7,154
December 2021 - 6,031
There was a decrease of 15.7% in sales compared to last year. Also, for December 2021 sales result over November 2021, sales decreased by 0.2%.
November 2021 - 9,487
December 2021- 9,465
There was a decrease of 0.2% in sales compared the previous month.
The number of home sales in December 2021 decreased by 15.7% on a year-over-year basis, and also decreased by of 0.2% from last month.
The average selling price of homes continues its upward trend.
December 2020 - $ 932,297
December 2021 - $ 1,157,849
There was a 24.2% increase in selling price compared to last year.
For the average selling price compared to the previous month, there was an increase of 2.5% for the home prices.
November 2021 -$ 1,176,682
December 2021 - $ 1,206,444
There was an increase of 2.5% in selling price compared the previous month.
Total New Listings added to the Market
December 2020 - 5,870
December 2021 - 5,174
There was a decrease of 11.9% in new listings in a year-over-year basis.
The December 2021 % Sales-to-New Listings Ratio of 122% increased by 5% compared to 117% of December last year.
Condominium Sales Statistics
Year-over-year Total Condo Apartment Sales
Q3/20 - 7,060
There was an increase of 10.6% in condo sales compared the previous year. There was also an increase in the average selling price for condos.
Q3/20 - $ 633,596
Q3/21- $ 689,831
There was an increase of 8.9% in average selling price compared the previous year.
Here is the summary of the listings of condominiums
Year-over-year Total New Listings
Q3/20 - 17,661
There was a huge increase of 30.9% in new listings compared the previous year.
From December 10 to January 7, there were a total of 221 sales in townhouses, lower by 35% compared to previous year. There were 122 new listings, also down by 22%. For the average selling price, a 1 Bd Townhouse can cost $755,000 which is 30% lower compared to the same month of last year. While a 2 Bd Townhouse costs $957,000, an increase of 24% compared to the previous year.
It may be well that the housing market will remain tight until spring. Unless more supplies are brought into the market, the average selling price of homes will likely to increase even more in the coming months. Demand for homes may start to see changes by the second half of 2022 once the bank of Canada end their bond buying program, ultimately to higher interest rates and decreased home affordability.
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