GTA Real Estate Market Report, December 2021

January 6, 2022


TORONTO, ONTARIO, January 6, 2022 – A record 121,712 sales were reported through TRREB’s MLS® System in 2021 –
up 7.7 per cent from the previous 2016 high of 113,040 and up 28 per cent compared to 2020. 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.
“Despite continuing waves of COVID-19, demand for ownership housing sustained a record pace in 2021. 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 condominium segment as well,” said TRREB President Kevin Crigger.
One sales trend that stood out in 2021 compared to 2020 was the resurgence in demand for homes within the city of
Toronto. Overall sales in the “416” area code was up by a greater annual rate (+36.8 per cent) compared to
sales growth for the surrounding Greater Toronto Area (GTA) suburbs combined (+23.6 per cent). The marked recovery in
the condominium apartment segment was a key driver of this trend.
“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.
In December, GTA REALTORS® reported 6,031 sales – a strong result historically, but still down by more than 1,000
transactions (-15.7 per cent) compared to the record of 7,154 set in December 2020. Over the same period, new listings
were down by 11.9 per cent to 5,174. The MLS® Home Price Index Composite benchmark was up by 31.1 per cent year over-year in December. The average selling price was up by 24.2 per cent annually to $1,157,849.

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