There is a persistent housing supply deficit in Canada and so the amount of homes available for sale right now in Toronto is the lowest it has ever been in Canadian history.
Data from the Canadian Real Estate Association, revealed that in January 2022 only 2 months of inventory were available on the market, and it was predicted then that based on demands for houses, Canada would probably be entirely sold out of homes if no new units were listed. The fact is that the present supply deficit of housing won’t disappear until new supply is added to the market. In light of this, low inventory continues to constrain the market.
It must be noted that the national historical average for housing inventory is normally 5 months. However from the year 2020 to present, the inventory has vastly declined. For instance, in November 2020 the year-to-date average was 3 months of inventory, however in 2021 this inventory fell to 2.
In 2020 Scotiabank reported that Canada had approximately 424 housing units per 1000 Canadians. When this is compared to other G7 countries which at the time had 471 housing units per 1000 residents, Canada would need another 1.8 million homes to catch up to the G7 average.
Now that the children have resumed school attendance, the coronavirus pandemic has passed its peak, and lockdowns are over, it is predicted that a lot more inventory is expected to hit the market.
What does this mean for potential sellers in Toronto?
Sellers can now take advantage of the present market conditions as now might just be the best time to list in all of 2022. Reasons being, since the supply of houses are low on the market presently, such market conditions are creating the highest demand, and the most intense pricing pressure so far in 2022. Buyers are aware of this and so they are shopping and putting in offers. Additionally, it is anticipated that price growth will continue throughout 2022.