Every new year begins with anticipation and anxiety for the real estate markets. In the last two years, the average price for homes sold has increased by more than 50 per cent. This is unprecedented, and has propelled house prices to record levels. In Toronto, the average sale price is approximately $1.2 million, including condominium apartments. Detached homes, on average, are selling for almost $2 million across the city.
The burning question is – are these prices pandemic driven and about to correct now that the worst appears to be behind us? The answer is NO!
Although the pandemic accelerated various forces at play by the beginning of 2020, the real estate landscape was already beginning to change. Rising prices were driving people to the suburbs and secondary markets, and working remotely supercharged the exodus. Even before the pandemic, supply was a serious problem. It is now critical.
Toronto’s population has been growing for years and has put pressure on supply. Canada is expecting more than 400,000 immigrants in 2022 and an even higher number in 2023. Canada’s immigration policies favour educated, skilled immigrants who bring wealth into the country. As a result, they very quickly become house hunters, competing with the already large group of existing potential buyers. For this reason (supply versus demand) we see multiple buyers competing for the few properties that make it to market. Recent listings in my brokerage have seen more than 20 buyers competing for the same property on offer night.
Given that the Toronto and area population will continue to grow, there will be continued pressure on house prices in 2022. The prevailing belief, especially among first-time buyers, is that if you don’t buy now, you might never be able to, and as a corollary, never acquire wealth. The disparity between rising house prices and household incomes is, justifiably, responsible for this belief.
The Leaside and Bennington Heights housing situation is no different from the broader markets. In 2021, there were 34 semi-detached listings with an average sale price of $1,496,569 and 131 detached home listings with an average sold price of $2,563,038. Our incredible community continues to be a highly desirable neighbourhood with top-rated schools, shops, restaurants, parks, and close proximity to the city core. We anticipate 2022 will see the tightest demand/supply housing conditions ever recorded.