December Ends a Record-Breaking Month for Home Sales in Toronto

2021 was a year during which the real estate market in the Greater Toronto Area broke plenty a record.

Although December itself didn’t yield figures quite as strong as previous months, it made for an excellent end to an excellent year, proving that Covid hasn’t been enough to disrupt demand.

In total, there were 121,712 sales in 2021 (according to the Toronto Real Estate Board’s MLS® System), which is 7.7% higher than the previous record of 133,040 from 2016. It also represents a 28% increase from 2020. Although demand surpassed supply, the number of new listings still increased by 6.2% compared to the previous year. 

The high level of demand relative to supply also contributed to an increase in selling prices, with the average price in 2021 being $1095,475.

That’s a whopping 17.8% higher than the average selling price of 2020 ($929,636).

Part of the reason for these figures could be the economic growth in Toronto, which has led to more highly-paid jobs being made available. Plus, the cost of borrowing remains low due to interest rates, encouraging potential buyers to make the most of the situation. 

Both standard ground-based homes and condominium apartments have proven popular, and properties located in the City of Toronto itself also did very well — this last point contrasts with the trends noted in 2020.

Last year, home sales within the 416 area code increased by 36.8%, while the suburbs in the Greater Toronto Area grew by 23.6%. Both sectors did well, but inner-city properties were a standout success.

In 2022, Toronto’s real estate market needs more house inventory if it wants to slow down price growth. The fierce buyer competition led to the impressive figures we observed in 2021, and this needs to be tackled directly — demand-side policies are less likely to be successful.

As for the December figures, there were 6,031 figures (according to GTA REALTORS®). This is a 15.7% decrease from December 2020, which holds the record for most transactions. Listings also decreased by 11.9%, but home prices continued to increase, with the MLS® Home Price Index Composite up 31.1% from last December.

If you are curious about your home's value please try our free online evaluation. Click here.