2021 Year in Review and a Look Ahead to 2022 - January 13, 2022
Ian Walterhouse
Thursday, January 13, 2022
2021 Year in Review - and a Look Ahead to 2022
As we move into 2022, both buyers and sellers are wondering, what’s next? Before we share the latest outlook for the year ahead, let’s review the record breaking details from 2021.
There have been no end of surprises or broken records in the Greater Toronto Real Estate market during the pandemic. And this year is no exception given low interest rates and the extremely high demand contributed to more Canadian real estate milestones. As one example, a record number of sales were reported through TRREB’s MLS® System in 2021 – up 7.7 per cent from the previous 2016 high and up 28 per cent compared to 2020. The Royal Bank of Canada reported that housing affordability hit a 31-year low in 2021.
“Homebuyer demand is supercharged and inventories are near historical lows in virtually every market, creating intense competition between buyers and pressured prices up,” said RBC senior economist Robert Hogue.
Record demand last year was up against a constrained supply of listings, with new listings up by 6.2 per cent – a lesser annual rate than sales. The result was extremely tight market conditions and an all-time high average selling price of $1,095,475 – an increase of 17.8 per cent compared to the previous 2020 record of $929,636.
“Tight market conditions prevailed throughout the GTA and broader Greater Golden Horseshoe in 2021, with a lack of inventory noted across all home types. 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. 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 TRREB Chief Market Analyst Jason Mercer.
The one word we choose to describe the market in 2021 would be feverish.
Bottom Line
While we have our own thoughts about what the market will bring in the next few months - most notably the continued excellent results sellers are getting in the winter months with continued very low inventory - we are eager to learn more about the latest market outlook from the Toronto Real Estate Board. We will update you once their new report is out in February.
Until then, if you have questions or are interested in learning more about your options in this market, reach out so we can connect with you.
We would like to hear from you! If you have any questions, please do not hesitate to contact us. We are always looking forward to hearing from you! We will do our best to reply to you within 24 hours !