Toronto home sales lead to record 2021 despite weaker December

TORONTO — A rebound in residential demand in Toronto contributed to record residential real estate sales and prices in 2021, despite a dip in December.

The Toronto Regional Real Estate Board said Thursday that a record 121,712 homes were sold through the MLS system last year, up 28 percent from 2020 and 7.7 percent above the previous record of 113,040 in 2016.

Average selling price peaked at $1,095 million, up 17.8 percent from the previous year’s high of $929,636 as new listings failed to keep pace with sales.

“Despite continuing waves of COVID-19, demand for owner-occupied homes has reached a record pace in 2021,” said TRREB president Kevin Crigger.

He said job creation and extremely low borrowing costs contributed to the revenue growth.

“These factors not only supported a continued demand for land-based homes, but also a rebound in the condo segment.”

Total sales in the “416” area code in the city of Toronto were up 36.8 percent, driven by apartment demand, while sales in the surrounding Greater Toronto Area suburbs were up 23.6 percent.

“Market conditions were tight during the GTA and wider Greater Golden Horseshoe in 2021, with a lack of inventory across all home types. The result was fierce competition among buyers, driving sales prices up double-digit year-over-year,” said Jason Mercer, TRREB’s chief market analyst.

He said the only way to moderate price growth is to add housing supply, as history has shown that additional taxes on primary homes and foreign buyers have not been solutions.

December sales fell 15.7 percent to 6,031, compared to the record 7,154 in December 2020.

Average selling prices rose 24.2 percent to $1.16 million, while new listings fell 11.9 percent to 5,174.

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