Canada’s biggest city has just 3,200 homes for sale, an all-time low

Inventory has plunged by more than half from 7,900 a year ago

National Weekend Edition /
Jan.January 09, 2022 11:00 AM
(iStock)

(iStock)

Looking for a home in Canada’s biggest city? Good luck with that.

Greater Toronto, a region with over 6.5 million people, has just 3,200 homes for sale, an all-time low, according to Bloomberg. That’s less than half the 7,900 on the market a year ago, the outlet said, citing the Toronto Regional Estate Board.

Blame low interest rates. Home sales surged by almost a third last year to more than 121,000, sparking fears of a bubble and breaking a record set in 2016. America’s neighbor to the north is more because mortgages make up one of its biggest sources of consumer debt. The Canadian financial system’s exposure to mortgages is twice that of its U.S. counterpart.

Average home prices in Toronto jumped 18 percent last year to about $862,000, also an all-time high.

While authorities have tried to cool the housing market by taxing foreign buyers, analysts say the fundamental cause of a national housing shortage is a mismatch between population growth and the pace of homebuilding.

“We continue to suffer from a real lack of inventory on the marketplace,” Jason Mercer, the Toronto real estate board’s chief market analyst, told BNN Bloomberg Television. “We really need to get a sense of what policy makers are going to do to get a handle on that supply issue.”

Supply is most directly controlled by municipal and provincial governments, which hold sway over rules for land use and development. Demand is mostly directly affected by measures available to the federal government, such as help for first-time buyers.

Economists last year projected that the home sales in Canada would peak in 2021 and start to fall in 2022 and beyond.

[Bloomberg] — Connie Kim





    Related Articles

    arrow_forward_ios
    Where have all the sellers gone?
    Where have all the sellers gone?
    Where have all the sellers gone?
    Eric Wu, CEO and co-founder, Opendoor (Opendoor, iStock)
    Opendoor stock soars on first profitable quarter
    Opendoor stock soars on first profitable quarter
    (iStock, Illustration by Kevin Rebong for The Real Deal)
    Can Hamptons, North Fork markets get any tighter? Yup
    Can Hamptons, North Fork markets get any tighter? Yup
    EisnerAmper chair of real estate services Lisa Knee (EisnerAmper)
    Listings shortage could endure for years, experts say
    Listings shortage could endure for years, experts say
    From left: Mike Rothman, founder and CEO, Second Avenue; Kyle Asher, co-head, Monroe Capital's Opportunistic Credit Group (Second Avenue, LinkedIn/Kyle Asher, iStock)
    Firm aims to tackle the problem with single-family rentals
    Firm aims to tackle the problem with single-family rentals
    (iStock) Houses, Prices, Rising
    U.S. home prices surged another 20% in February
    U.S. home prices surged another 20% in February
    A photo illustration of "Foreclosure" signs (iStock)
    Foreclosures surge 181% to highest levels since March 2020
    Foreclosures surge 181% to highest levels since March 2020
    (iStock/Photo Illustration by Steven Dilakian for The Real Deal)
    Homeowner associations look to box out investors
    Homeowner associations look to box out investors
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...