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The first month of 2022 hasn’t shown any signs that the demand for housing in Toronto will slow down any time soon.
There were 5,636 sales throughout the month compared to 6,888 last year (according to the Toronto Regional Real Estate Board MLS® System), which is a decline of 18.2%.
Yet although the numbers from last month couldn’t quite match those from January 2021, this was likely due to the low housing supply rather than a reduction in demand.
Despite the steep decline, January 2022 was still the second most successful January in history, and market conditions remain very tight. This is a result that matches previous predictions from the TRREB, which suggested 2022 would bring sales figures that weren’t quite as strong as 2021 but impressive nonetheless.
New listings also decreased compared to 2021, with a drop of around 15.5%. Combined with the impact of fewer sales, this resulted in just 4,140 active listings by the end of the month — that’s not just a 44% drop, but the lowest level listings have reached in more than twenty years.
Unsurprisingly given the market condition, house prices have also risen. The MLS® Home Price Index Composite benchmark has surged 33.3% compared to January 2021, while the average house price rose to $1,242,793 — that’s an increase of 28.6%.
So, what can we expect in the future? The TRREB expects the total number of property sales throughout the year to be 110,000; a decrease compared to the previous year but still a good number by usual measures.
Meanwhile, the average selling price is expected to reach $1,225,000, which would be a rise of 12% compared to 2021.
In other words, it’s fair to assume that things won’t be slowing down any time soon.