183!!  That is the number of detached homes available for sale in the City of Toronto. 183!!  Wow. 2021 ends, but the market dynamics remain the same. Chronically low inventory driving prices to record levels. We have been saying for years that inventory is low, and each year we hit a new low.

This shockingly low number is unprecedented. Having said that, 2021 was a record-breaking year for the number of sales for the Toronto Region Real Estate Board (TRREB). I went on record way back in early March, after just two months of 2021 sales, that 2021 would be a record-breaking year. I was thinking we’d reach 122,000, and we almost did, squeaking in at 121,712 sales for the year. If you are wondering how we could experience a record-breaking year with astonishingly low inventory, you are not alone. I’m thinking the same thing. I think it points to a pool of serious buyers who are prepared to make quick decisions and who are willing to put down serious money to live in Canada’s largest city. After all, many of these purchasers are move-up buyers who are benefiting from increased equity when they sell their current homes.

We have heard low inventory and increase in sales prices before, but it can’t be taken for granted. Year-over-Year stats: new listings are down again (-12%), properties sold down (-16%), days on market are down from 24 to 13 (-46%), AND the average selling price is UP 24% across the Toronto Regional Real Estate Board (TRREB). The fact that the properties sold number is down (-16%) is a symptom of such low inventory numbers. In the City of Toronto, the average selling price came in 18% higher at $1,056,707 over the same month in 2020.

The higher end of the market ($2,000,000+) saw a whopping 65% increase in units sold over last year.

Condominium apartment unit sales were down (-7%) over last year and down (-27%) over last month, probably a combination of a seasonal dip and low inventory. The average selling price was also up (17%) over last year.

Prices rose by more than 24%, while active listings fell to only 3,232 (all housing types), 59% fewer than last year. Despite the shockingly low inventory levels and 16% fewer sales in December compared to last year, 2021 still broke the record for homes sold. Demand is there and buyers are willing to spend for a scarce commodity. Entering 2022 expect more of the same with rising sale prices possibly leveling off due to affordability at some point.