Historic High Price Year For Toronto Housing Market
Toronto real estate market has always been thriving. However, it recently broke records with all time high price. Hence, purchasing a new home in the largest metropolitan area of Canada sounds like a dream to most people out there. In fact, it is next to impossible for an average Canadian to go ahead and buy a house in the Greater Toronto Area.
According to the statistics of Toronto Regional Real Estate Board, more than 121,000 houses were sold in the region during the year 2021. This is a 7.7% increase when compared to 2016. But if you compare it with 2020 figures, you will notice that there is a rapid increase of 20%. People were quite reluctant to invest in new homes during the beginning of the pandemic. That’s the main reason why there was a significant drop in the house sales. However, pandemic started coming to an end in 2021 and people went ahead and started buying new houses. However, there was not much supply available to cater to the demand. That’s the main reason why the prices of available houses increased significantly within the year 2021.
Average house prices in 2021 have increased by 17.8% when compared to the previous year. The average price of a house in the Great Toronto Area is now around $1,095,475. This is more than 10 times from the average household income of the region.
When you deep dive and take a look at the Toronto housing market, you will also figure out that people are quite keen to invest their money on luxury homes. In fact, the demand available for luxury homes in the region are many times higher when compared to average houses. This is one of the biggest factors contributing towards the increase of average home prices.
The demand for houses in Toronto priced more than $4 million increased by 224% within the past year. This is quite a shocking figure to note. In fact, 805 luxury properties in the region were sold within the year 2021. This is applicable for luxury condos as well, where there was an increase in 179% when compared to the previous year.
It seems like that people who are looking forward to living a luxury lifestyle focus more on Toronto when compared to other parts of the country.