Mississauga Housing Forecast 2020
Are Mississauga home prices about to fall significantly? More speculators are saying it is officially a buyers market. Yet no one really knows whether homeowners will be that financially stressed to cause them to sell their home, or lose it.
If listings continue to dwindle and new home construction is stopped, it’s hard to envision a large pool of homes that would give buyers a negotiation position and more choice. This shutdown period would have to extend many months before the unlucky begin to list their homes or face bankruptcy.
As you can see in the charts from CREA below, the last 3 months are rather precipitous. The rate in price decline and sales will no doubt be drastic for April and May. We have to wait for the numbers. Realtor sentiment surveys in the US are not promising. It’s the same in every city from Newmarket to Mississauga to Toronto. Should you sell your Mississauga house?
Corona Virus and the GTA Real Estate Market
The aid packages in Canada and the US will impact homeowner financial health. However, Ontario already had enormous debt. Thanks to Hazel McCallion, Mississauga’s debt position is the most favorable anywhere. This is the city’s big strength, along with a low CAD.
In its new report, TRREB notes a big change after March 15th. They report only 3,369 sales reported during the March 15 to 31 period – down by 15.9% compared to the same period in March 2019.
Still March was an excellent month for real estate sales in the GTA. TRREB reports the MLS® Home Price Index Composite Benchmark price rose by 11.1% compared to March 2020. The average selling price for the month of March 2020 was $902,680 – up 14.5% compared to March 2019.
The average selling price for sales reported between March 15 and March 31, was $862,563 – down from the first half of March 2020, but still up by 10.5 per cent compared to the same period last year. So it would appear the hot market is only beginning to fall at the present.
Few are positive about housing markets across the world as this global recession intensifies. The Ontario government is sending strong messaging now to warn residents to stay indoors. Hopefully, the infection numbers will not climb out of control. Once the pandemic eases, we are left to wonder how long it will take the economy to get rolling again, and whether buyers will be so fervent to buy a home in the Mississauga region.
Home Prices Rise in Mississauga Area
In March 2020, TRREB reported a total of 756 home sales in Mississauga with an average price of 860,158 for houses in Mississauga. 248 houses were sold in Mississauga in March at an average 1,273,000.
There were 767 home sales in Brampton at an average price of $807,000. 399 houses were sold in Brampton at an average price of $928,000. 210 homes were sold in Milton at an average price of $484,000. The average house sold in Milton was $1,012,000.
So if you own a house in the Mississauga, Oakville, Brampton, Port Credit or Milton, you could be sitting on a gold mine.
What are we to make of the Mississauga market heading into April, May and the summer season? It looks like a strong shutdown although some pending transactions are still on course.
I’ll report more later. Stay Safe!
Mississauga has undergone a dramatic change in the last 10 years. A gigantic leap in housing prices along with an explosion of new condo developments has created a strong real estate market. Whatever happens in this market, there is always be a buy and you’ll likely get your price. Right now might be the best time to buy a home in Mississauga.
Prices have consistently risen, right through the recession, and given the lack of housing available and strong economy and immigration trends, home and condo prices will likely climb. For real estate investors, any property close to the city of Toronto will retain its value. Some districts have actually seen shocking rises in average price.
Home and Condo Sales in Mississauga
Sales of all housing types had been on an incline since the drop in 2017. A lack of detached housing amidst strong population growth has pushed many buyers into the more affordable condo apartment market. And now condos and apartments are quickly rising to an unaffordable price level. 2021 will see further price pressure.
The Toronto housing market in 2020 is driven by a strong lack of availability of affordable units, US China trade problems, consumer debt, high taxes, high municipal fees, yet a now favourable CAD USD exchange rate.
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Need to buy or sell in Mississauga and Milton? See Damir Strk with Remax, who has been active in the region for 20 years. He knows the trends and neighborhoods – find his contact details on his site, and mention that I sent you!
Is it Boomtimes or a Crash Ahead?
For so many years, forecasters have predicted a Toronto Real Estate crash. Some were wishful that housing prices would fall while others were politically motivated to see markets crash everywhere.
Until now, there wasn’t a chance. Demand was too strong and the economy much too strong for a downturn. Now in 2020, we may see a corona virus real estate collapse.
Yet consider that after the Corona Virus recession, Canada and Mississauga will have a lot of momentum. The collapse of the oil industry will bring a continuous low loonie exchange rate with the USD. That will bode well for Mississauga companies exporting to the US and for Mississauga’s central positioning to serve a strong Ontario market.
Forecasting sales volume and housing prices in Toronto or Mississauga is fraught with some tough challenges. Despite the economic uncertainty and the risk of fast falling prices of detached houses, semi-detached homes and condos for sale in Mississauga, buyers can see prices typically stay stable through the years.
Is this the right year to buy rental income property in Mississauga, Markham, Aurora, Richmond Hill, Vaughan, or Newmarket? Rents in the GTA are skyrocketing. Find out more about the best investments in 2017 including investing in real estate.
Some stats from the lastest update provided by the Toronto Real Estate Board helps us understand what might happen in 2019 and beyond.
Surprisingly, the MLS® Home Price Index (HPI) Composite Benchmark rose in Mississauga and Peel region year over year. As you can see condos and apartments are in hot demand with a consistently high selling price.
Graphic courtesy of Trebhome.com
Buyers with a long term view have little to fear about the value of a home or condo in Mississauga.
Why Move to Amazing Mississauga?
Mississauga enjoys close proximity to Toronto, Toronto International Airport and the major highways of 401, 407, and the QEW. Mississauga has had the lowest taxes of any town or city within the GTA for many years. Mississauga also possesses a lot of land for development. There is brownfield land for residential and commercial development and there are older buildings and properties that could be developed. Mississauga has the best attitude toward business development. Lower startup costs and high market access, makes it ideal for immigrant investors wanting break into the Canadian and US market.
If you’re a buyer with an eye on launching a business or moving here to the Toronto area to work, Mississauga may be the most intelligent choice. The city has enjoyed phenomenal growth of late, which is most noticeable in Mississauga’s urban core area near Hurontario St. and Burnhamthorpe Rd which is located in the more south eastern area of Mississauga. The beautiful scenery of Lake Ontario and the night life of Toronto are very close by.
It’s difficult to have a successful economy and community unless your real estate sector is thriving and enabling the development of homes and businesses. Mississauga grows because of the pro-business sentiment here. If home and condos prices are lower in Mississauga, it’s because there’s more land to use.
Communities such as Oakville, Milton, and most districts in Toronto have less usable land and that drives up prices. Home prices are still very reasonable in this city. If you’re a first time buyer who doesn’t mind a little commute to work, Mississauga gives you a chance to own a home or condo for hundreds of thousands of dollars less than other communities in the GTA.
There is a shortage of homes for sale in Mississauga. To buy one, you’ll need a creative Realtor who knows how to get homeowners to look ahead and let go of their house. Today, you need a good Realtor to find a home. Contact me and I can connect you with someone who is competent and whom you can trust.
Housing Starts in Mississauga
Mississauga can make your dreams of home ownership in Canada come true. The employment stats and modern lifestyle, great schools, and good transportation options offer everything you need to launch and grow your family. Living here gives you a better chance at quaifiying for a home mortgage and having a financially sustainable lifestyle. Compare this to other communities with high home prices and higher unemployment, and you’ll note how Mississauga is a less risky option.
Mississauga is the largest city in the region of Peel. Other municipalities in Peel, including Brampton and Caledon have plenty of room to grow, and this may be why prices are lower here. Single new home construction starts in Peel are up, yet multifamily dwellings appear to be declining. Could be small home builders are persisting in making a profit ahead of large project developers. All part of a health local economy.
However, this graphic below shows that construction starts of new single detached homes in Mississauga have plummeted from 2015. This will put upward pressure on prices of homes for sale on the resale market (Mississauga mls). Peel Region reports that these 478 home construction starts is the lowest in many years.
Will Population and Employment growth In Peel Region support Real Estate Prices
Screen Capture courtesy of Peelregion.ca
This graphic from Mississauga.ca/data has one signifiant stat: that 93% of employed people here are in full time jobs.
Screen Capture courtesy of City of Mississauga’s 2016 EMPLOYMENT PROFILE
Apartment Construction Expected to Grow
This stat from the City of Mississauga’s (Mississauga Growth Forecast Housing 2008 – 2031 report), suggests they expect a huge growth in multi-unit apartment buildings to begin in 2016. The current forecast shows less growth in apartment construction. However, with housing availability at a premium, perhaps condo and apartment units will grow in number to support the population.
Screen Capture courtesy of Peelregion.ca Housing Unit Growth Chart courtesy of Ciy of Mississauga – Forecast from 2008 report
Looking for Vacant Land in Mississauga
There’s lots of land vacant in Mississauga, however you may find much of it is not zoned for housing, or zoned for intensive housing developments. You can find out more at their Vacant Land Profile.
Screen capture courtesy of the City of Mississauga
Mississauga and Market Update for November 2016
The TREB home price index tells us Mississauga still has the best opportunities for buyers and investors with a composite year over year price growth of 20.3%. If the GTA economy rolls along, will Mississauga become the new price growth leader?
With Millennial aged buyers coming into their family formation and house buying years, we can predict this group will put upward pressure on home prices in Mississauga. Homes are currently selling for 2% above asking price on average, compared to 1% less than asking price in October of 2015.
Mississauga Home Prices Chart
Below you can see how the average prices of detached homes, semi-detached and condos have risen, along with my forecast prices in bold. According to Treb’s Mississauga home price update, the latest price of detached homes in Mississauga for November 2016 is up $54,000 from last month. My own forecasted future prices in bold are based on the growth in price from 2015 to 2016.
The southern most communities on the Northern shore of Lake Ontario had very high price increases year over year.
|Community||Sales Volume 2nd Quarter 2016||Avg Price||Sales Volume 2nd Quarter 2015||Avg Price||Year to Year Increase %|
|Western Business Park||0|
|Meadowvale Business Park||0|
|Central Erin Mills||158||$780,193||193||$654,322.00||19.24%|
This report on the Mississauga Real Estate outlook is updated monthly. Please Bookmark this page and return. Se more on the Toronto housing market.