GTA REALTORS® RELEASE DECEMBER STATS
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 condo 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 were up by a substantially 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.
GTA REALTORS® Release November 2021 Stats
Home sales reached a new record for the month of November and the average selling price also reached a new all-time high. New listings were down substantially compared to last year for all market segments – further highlighting the inherent supply issue across all home types in the Greater Toronto Area (GTA).
GTA REALTORS® reported 9,017 home sales through TRREB's MLS® System in November 2021 – 3.3 per cent above the November 2020 result, setting a new record. In contrast, new listings were down by 13.2 per cent year-over-year, with double-digit declines for low-rise home types, and condominium apartments.
"Governments at all levels must take coordinated action to increase supply in the immediate term to begin addressing the supply challenges of today, and to work towards satisfying growing demand in the future. The GTA remains the primary destination for new immigrants, and is at the centre of the Canadian economy. For far too long governments have focused on short term bandaid policies to artificially suppress demand. Current market activity highlights decisively that these policies do not work, and unless governments work together to cut red tape, streamline the approval processes, and incentivize mid-density housing ongoing housing affordability challenges will escalate. On this point, we commend the City of Toronto for moving forward with initiatives to facilitate the creation of more mid-density home types, including their current consultations on options to encourage more multiplex development across the city," said TRREB President Kevin Crigger.
The MLS® Home Price Index composite benchmark was up by 28.3 per cent year-over-year in November 2021. The average selling price for all home types combined was $1,163,323 – up by 21.7 per cent compared to November 2020.
"A key difference this year compared to last is how the condo segment continues to tighten and experience an acceleration in price growth, particularly in suburban areas. This speaks to the broadening of economic recovery, with first-time buyers moving back into the market in a big way this year. The condo and townhouse segments, with lower price points on average, will remain popular as population growth picks up over the next two years," said TRREB Chief Market Analyst Jason Mercer.
Rental Market Report
TRREB Releases Q3 2021 Rental Market Statistics TORONTO, ONTARIO, October 29, 2021 – Accelerating economic recovery from the pandemic has spurred renewed demand for rental accommodation in 2021. In the third quarter, there was a double-digit increase in the number of condominium apartment rental transactions reported through the Toronto Regional Real Estate Board’s (TRREB) MLS® System. Over the same period, tightening market conditions resulted in an increase in average rents across all unit types.
Greater Toronto Area (GTA) REALTORS® reported 16,121 condominium apartment rentals in Q3 2021 – up by 15 per cent compared to Q3 2020. During the same period, the number of rental units listed was down substantially, by almost one-third.
“We have seen a dramatic resurgence in rental demand this year. This demand will be augmented in 2022 and 2023 by record levels of immigration. Unfortunately, the supply of rentals is not keeping pace. The City of Toronto recently announced a new vacancy tax to increase rental supply, but it is not a magic solution. GTA municipalities and the Ontario government must work collaboratively to streamline the planning and development approvals process to alleviate the current supply backlog and to meet the needs of today – let alone the needs of tomorrow,” said TRREB President Kevin Crigger.
The average one-bedroom condominium apartment rent was $2,060 in Q3 2021 – up 2.4 per cent compared to $2,012 in Q3 2020. The average two-bedroom condominium apartment rent was $2,773 in Q3 2021, an increase of four per cent compared to $2,666 in Q3 2020.
“The GTA rental market took about a year to rebound from the pandemic, which speaks to the improvement in the region’s labour market and economic outlook. Tightening market conditions suggest the condo apartment vacancy rate has trended lower and average rent growth will continue to accelerate as population growth picks up next year and beyond,” said TRREB Chief Market Analyst Jason Mercer.
CONDO SALES REACHED AN ALL-TIME HIGH
Record Condo Apartment Sales in Q4 TORONTO, ONTARIO, January 27, 2022 – A record fourth quarter capped off a record year for condominium apartment sales in 2021. While condo listings were high from a historic perspective, it was not a record year on the supply side of the market. In fact, condo buyers experienced some of the tightest market conditions in 20 years. Strong competition between buyers led to an acceleration in price growth to a new record, including double-digit annual growth reported in Q4 2021.
A summary of the Q4 2021 condo market is as follows:
• Q4 2021 condo apartment transactions amounted to a record 7,815 in the GTA – up almost 21 per cent compared to 6,462 in Q4 2020.
• On the supply side, the number of new listings entered into TRREB’s MLS® System in Q4 2021 was down almost 29 per cent to 8,758.
• With condo sales up substantially year-over-year in Q4 and new listings down substantially, standing inventory (active listings) at the end of December 2021 was down by almost two-thirds compared to the end of 2021.
• Very tight market conditions, with strong competition between buyers, resulted in an acceleration in price growth in the fourth quarter, pushing the average selling price up by 16.4 per cent to $710,087.
“The resurgence in the condo market was a key real estate story for 2021. First-time buyers, who arguably remained on the sidelines longer than existing home buyers during the earlier stages of the pandemic, reentered the market with vigour last year. Condo demand will be robust in 2022 as well, with the expected increases in immigration and temporary migration into the GTA,” said TRREB President Kevin Crigger.
“In the early days of the pandemic, we saw a spike in condominium apartment listings and a brief lull in condo price growth. The situation reversed dramatically in 2021, with the number of available units dropping in the face of strong demand. The resulting double-digit price growth will carry forward into 2022,” said TRREB Chief Market Analyst Jason Mercer
TRREB Releases Q3 2021 Condo Market Statistics
TRREB Releases Q3 2021 Condo Market Statistics TORONTO, ONTARIO, October 29, 2021 – The condominium apartment market has experienced strong growth in 2021 and this continued in the third quarter. Sales in Q3 were up substantially compared to the same period last year. In addition, the condo inventory that built up during the initial phases of COVID has been more than absorbed with listings down significantly compared to last year. The result has been the resumption of seller’s market conditions, and above-inflation price increases relative to 2020.
Greater Toronto Area (GTA) REALTORS® reported 7,810 condominium apartment sales through the Toronto Regional Real Estate Board’s (TRREB) MLS® System in Q3 2021. This result was up by 10.6 per cent compared to Q3 2020. Over the same period, new listings were down by 31 per cent. This means that market conditions tightened markedly over the last year, increasing competition between buyers.
“The condo market has seen a dramatic resurgence compared to a year ago. In 2020, first-time buyers sat on the sidelines due to economic uncertainty. This year, however, improving economic prospects have seen many of these buyers accelerate their search for a property. This trend will only continue as population growth resumes next year, and limited changes to supply are expected,” said TRREB President Kevin Crigger.
The average selling price for Q3 2021 condominium apartment sales was $689,831 – up 8.9 per cent compared to Q3 2020.
“The condo market is catching up to the low-rise market segments in terms of market conditions. If demand continues to increase relative to supply, which is a distinct possibility assuming an acceleration in population growth over the next year, the annual rate of price growth could increase as we move into 2022,” said TRREB Chief Market Analyst Jason Mercer.