Market Update: Record-breaking sales reported in 2021!
Monday Jan 17th, 2022
Record-breaking sales reported in 2021!
The 2021 real estate market has been on fire, to say the least. We are constantly breaking all-time highs in sales and home prices and they just don't seem to be slowing down.
The Toronto Regional Real Estate Board reported record sales of 121,712 in 2021 which is up 28% from 2020!
What caused the rise in sales despite home prices continuing to increase?
TRREB President Kevin Crigger stated two factors:
#1 Economic growth in many sectors
#2 Low-interest rates
We believe that the #1 factor for home prices skyrocketing is low inventory. New and active listings are trending downwards, causing a disparity between supply and demand.
We will likely see a continuation in property values increasing in this market as listings remain scarce going into 2022.
"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," said TRREB Chief Market Analyst Jason Mercer.
We would need to prioritize more supply in order to keep up with demand to create a balanced market in the future. Current action by the government will only resolve issues in the short term.