2021 Toronto Housing Market Outlook
Toronto housing market to favour sellers in 2021, prices expected to rise 6%
The Toronto housing market is expected to be in seller’s favour in 2021, characterized by a persistent supply shortage and rising prices. Low inventory has been a common trend across many Ontario housing markets in 2020, putting upward pressure on prices. Indeed, the Toronto housing market saw average price rise to $918,883 in 2020 (Jan. 1-Oct. 31) compared to $819,832 in 2019 (Jan. 1-Dec. 31). Growing demand, low supply and rising prices are expected to impact activity and prices in 2021. Thus, the RE/MAX outlook for Toronto real estate is a 6% increase in average price to approximately $974,015 across all property types.
The Toronto housing market currently has two months of inventory. Housing supply levels continue to decline, and are not expected to improve in 2021, which may push average home prices up.