Finally, 2021 is over the horizon

Hi, I’m Thomas Cook from Toronto's Real Estate Team at RE/MAX and here is our December 2021 and year-end Toronto real estate market report.
 
The most noteworthy December statistic is the lowest-ever number of active listings there were at the end of the month… a mere 3,232 across the entire GTA.
 
Let’s review some of the Toronto Real Estate Board statistics and see what’s happened.
 
December numbers came in strong historically with 6,031 sales of houses and condos across the GTA.  Although 16% below the strong end of 2020, sales surpassed most previous Decembers.  An ultra-low supply of inventory contributed to keeping appreciation high.
 
Condo townhouse and high-rise suites had a record high percentage of total sales in December (42.1%) signalling condos are back in demand.  2,539 units were sold in the month making that the 2^nd highest-ever for the month of December.
 
The December 2021 average sale price for all GTA homes came in at $1,157,849… a big 24.2% increase compared to one year ago.  If you compare this December to December 2019, two years ago, the average sale price is up 38.2%.
 
The active listing inventory is one of the strongest indicators of how slow or fast the market has been moving.  The ‘active listing’ inventory average for the month of December was down 59% compared to last year at this time with just 3,232 active listings this year.
 
The sales-to-listings OR percent-chance-of-selling ratio is how we determine what type of market we’re actually in.  24-28% is a neutral market, below 24% is a buyer’s market and above 28% is a seller’s market.
 
With our busy market, the December ratio bumped up to 187% which is representative of an ultra-busy seller’s market.
 
The days-on-market average for GTA / Toronto homes was one day slower at 14 days.
 
Here’s a snapshot summary of the significant real estate milestones for Toronto in DECEMBER 2021 as we end the year.

• December sales (6,031) were 16% below last year but were the 2^nd highest ever for the month of December on TRREB
• Active Listings (3,232) were the lowest ever for the month
• The ratio of sales-to-listings made a big jump to 187% in December– putting us into an ULTRA-busy seller’s market
• The December average sale price came in at $1,157,849– and rose to 24.2% above one year ago and 38.2% above the December average in 2019.
• The GTA real estate market overall averaged a quick 14 days-on-market
• 2021 logged a total of 121,712 sales (a new record) and a year-ending 2021 average sale price of $1,095,475 compared to 2020’s year-ending number of $929,636
• Detached home sales in December 2021 with a purchase price over $2,000,000 were up 70% (441 houses) while condo apartment sales over $2M were up 0% (15 suites) compared to December 2020
• The CONDO townhouse / highrise share of the market came in at a big 42.1% during the month and condo sales were the highest ever for the month of December
• Downtown condo active listing numbers were dramatically lower… by 64% in C01 and by 54% in C08 from last year
• December year-over-year downtown condo sales were lower in both C01 (-14.5% & 2^nd highest since 2000) and in C08 (-16.4% & 2^nd highest ever) compared to 2020 with specific monthly average sale prices showing 15% to 21% increases year-over-year for the second time
• The downtown condo days-on-market average increased slightly to 21 days (C01) & increased slightly to 25 days (C08)
• The ratio of sales-to-listings for condos downtown jumped in C01 to 99.7% and in C08 to 86.9% leaving both condo districts in extremely busy seller market territory
• Because of the influence of lower condo demand earlier this year, the adjusted average condo sale prices are now ranging between 3-4% in both C01 and C08 from December 2020.
• December was the extreme as we continued the trend we’ve had all year of low listing inventory and high buyer
• December saw detached homes in the 905 appreciate year-over-year by an average of 33.3% and 905 condominium average sale prices rose by an average of 23.4%
• Average annual appreciation over the last 5 years is 8.8% and 6.2% yearly since 1996
• Unless the Federal or Provincial governments enact some kind of successful restrictions on our market, you can expect the ultra-busy sales and low inventory numbers to continue well into 2022

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