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Toronto And Vancouver Home Sales Hit Record Levels In 2021
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Toronto and Vancouver home sales each hit record levels in 2021 despite government efforts to cool down the overheated markets in Canada's two largest cities.
Data from the Toronto Real Estate Board (TREB) showed that home sales in the Greater Toronto Area (GTA) hit an all-time high of 121,712 last year, up 7.7% from the previous record of 113,040 set in 2016. It also marked a 28% increase compared to 2020 sales.
TREB pointed out there was a resurgence of sales activity in the City of Toronto compared to the suburbs last year. The increase in sales was led by a rebound in demand for urban condominiums.
The flurry of housing activity came amid an ongoing slowdown in the number of houses available for sale. In 2021, new listings only rose 6.2% across the GTA.
The tight market conditions helped push the average selling price of a residential property in the GTA in 2021 up by 17.8% year-over-year to $1,095,475, a figure that may exasperate concerns about Canada's housing affordability.
Vancouver Sales Rose 42% Last Year
Vancouver home sales also rose to a record in 2021 as the real estate frenzy induced by the pandemic overcame government policies aimed at reigning in the market.
Just shy of 44,000 homes were sold in the metro Vancouver area last year, a 42% increase from 2020's sales and almost 1,700 more than the previous record, according to figures released by the Real Estate Board of Greater Vancouver.
The last high, set in 2015, came just before authorities in British Columbia and Vancouver put in place measures intended to cool the market, including taxes on foreign homebuyers.
However, the higher taxes couldn't compete with ultra-low interest rates and demand for larger living spaces spurred by COVID-19, which, combined with a historic shortage of houses for sale, sent Vancouver's market to record highs.
The average home price in Vancouver also rose to a record in 2021, ending the year at $1.23 million, 17% higher than in December 2020. The buying frenzy has also depleted the city's housing stock, with the number of homes listed for sale plunging to just above 5,000 at the end of December, the lowest level in more than 30 years.
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