What in the world has been going on with our local Real Estate Market??


To attempt to figure out where the Real Estate Market may be headed in 2022 we need to first understand what REALLY happened in 2021.


There has been a lot of Real Estate “news” and “statistics” splashed over the media throughout the past year but what is the REAL story BEHIND those headlines?


2021 started with a lot of optimism.  After all it was not going to be 2020 right? So how bad could it be? And so we embarked on a new year full of hopewith renewed enthusiasm and energy from an emotionally, mentally, and physically draining 2020.  For Sellers things were looking up.  But for most Buyers… the battle had only just begun.


Read on to see how 2021 shaped up from a Real Estate Perspective.


2020 In a Nutshell:


After the first lockdown in March 2020 there were lower than average listings hitting the MLS for the duration of 2020.  As the pandemic moved forward, demand grew stronger as Buyers looked to move up and down the property ladder.  Some made the move West from Toronto and work from home became the status quo for many.   With very low Active Listing Inventory and high demand from Buyers prices started to increase… and haven’t stopped increasing since.   As subsequent lockdowns came, more listings were held back from the market thus continuing the cycle.


March 2020  December 31st 2020: LOW Active Listing inventory, LOW Number of Listings, HIGH Number of Sales with HIGH Prices


What was Happening:

LOW listing inventory + HIGH Buyer demand = HIGH average home sale prices.


What it Felt Like:

There were no listings on the market and prices were high.


2021 Recap in Brief:


Overall homeowners looking to sell in 2021 were rewarded with incredible results, while potential homebuyers overall could summarize the market with some combination of frustrating, confusing and downright depressing!  With seemingly more questions than answerslet’s try and understand just how we got here and where this market may be heading.


In a lot of regards 2021 was really a tale of three different markets.  With a shift in the late Spring and early Fall that for the most part went unnoticed.  



January 2021 – April 30th 2021: LOW Active Listing Inventory, HIGH Number of Listings, HIGH Number of Sales


Once 2021 came around and some progress was made in our fight against the pandemic, we expected the market to flood with listings.   For the first part of the new year, we were breaking records with the most homes ever listed each and every month.  Along with setting records for the number of new listings we were also setting records for number of sales, resulting in a very low active listing inventory.


In most cases homes were receiving anywhere from a handful to a dozen (or dozens) of offers each.  


What was Happening:

Record HIGH new listings + Record HIGH sales = Continued HIGH average home sale prices and LOW active listing inventory.


What it Felt Like:

There were no listings on the market and prices were getting even higher.


April 30th 2021 – September 30th 2021: LOW Active Listing Inventory, AVERAGE Number of Listings, AVERAGE Buyer Demand


As the trends were starting to emerge in the first half of 2021 many Realtors believed that demand would slow down and listings would start to flood the market.  The prediction was that this would cause the market to soften slightly.   Howeverthat flood of listings never came.  As a result both Buyer Demand (sales) and New Listings (inventory) slowed down and a record low Active Listing Inventory continued on.


What was Happening:

Decreased Buyer Demand + LOW new listings = LOW active listing inventory, LOW number of recorded sales, and decreased market activity.


What it Felt Like:

There were no listings on the market and a shift might be looming.


September 30th 2021 – Present: Extremely LOW Active Listing Inventory, Extremely LOW Listings, HIGH Buyer Demand


As the summer months were winding down Buyer Demand started to ramp back up again.  However, the listings these Buyers were hoping for didn’t come.  


What was Happening:

HIGH Buyer Demand + LOW new listings = LOW active listing inventory, increased competition, and HIGH average sale price.


What it Felt Like:

There were no listings on the market, there was competition for almost every listing, and prices were (and are) getting out of control!


So… the Million Dollar question is… Now What?


Where do we go from here?  With another new variant on the rise and public health restrictions coming back into place, I do not foresee a flood of new listings in the New Year.   


Lives change, relationships change, employment changes… Even amidst a pandemic life does go on and with it so does Real Estate.   Those life changes are predominant factors motivating Canadians to buy and sell or to simply stay put.  As we navigate through this latest variant, I believe that demand pushing through from 2021 will continue to be strong but listings will be continue to be sparse…


The most important metric is that of Buyer Demand.  But it is the hardest one to measure.   As long as demand stays highand listings stay low2022 will look a lot like the end of 2021.    


My Advice for You?  Stay in the loop.  It’s true what they say, knowledge is power.  And the more you know about your local Real Estate Market and understand the why behind those headlines, the better equipped you‘ll be when it’s time to act.  


We have the inside information.   We make it our business to know this business.  Let us guide you through this, by your side, as your partner.  Whether it be in the tail end of 2021, the beginning of 2022, the end of 2023 or beyond, we will move forward at your pace and comfort level, as we navigate this crazy market during these crazy times – together.