Mississauga Real Estate Update & Housing Outlook
Mississauga is a great city to invest in and live in. The fall market saw a small resurgence in sales in the city, and due to a paucity of houses for sale in Mississauga, Oakville, Etobicoke, Milton, and Port Credit, prices are almost certainly going to rise after the winter of 2018.
Prices of luxury homes fell dramatically in many regions and that skewed price reports as buyers actually abandoned house searches to focus on condos.
Now that the stress test reduction has lowered demand for homes over $700k, we’ll likely see price pressure on any homes under $700k (tongue in cheek). Well, okay there are no homes under $700k.
|Average Detached Home Prices Mississauga Region – December 2017|
|City||December 2017||November 2017||October 2017||September 2017||August 2017||July 2017||May 2017||April 2016||Price Change Last 18 months||Price Change Last 8 Months|
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 your price, you’ll sell your home.
A new survey of business and consumer confidence is high, and buyers will find a way to finance the purchase of your home. If you’re asking, “Should I sell my house?“, the answer is probably yes.
Prices have consistently risen, right through the recession, and given the lack of housing available and strong economy and immigration trends, home and cond 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.
Speculation about how the Toronto housing market will fare in 2018 is driven by extreme lack availability, weakening construction, and a new government in July. Experts and real estate afficionados are pushing their positions on either side of the boom or crash issue. And as Toronto goes, so goes Mississauga.
“A strong economy and continued inflow of workers into the (GTA), combined with a prolonged shortage of homes for sale, have created a market where high, single-digit price appreciation remains the norm,” said Royal LePage senior vice-president Gino Romanese. “We expect to see another year of healthy price appreciation in 2016, although at a slightly diminished pace when compared to 2015, as the dynamics driving the GTA market right now seem unlikely to change in the short-term.”– from a report on Mississaugah.com
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Check out the stats below and send this post to your friends and contacts who may be wondering if now is the right time to sell, before the housing crash. You can get your price this spring.
Is it Boomtimes or a Crash Ahead?
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 soaring prices of detached houses, semi-detached homes and condos for sale in Mississauga, I’ve collated some data provided by TREB to give us some projected prices for next year.
If 2018 is a repeat of 2016, then these estimated prices might be reasonably accurate. November’s estimate was only off by a couple thousand. If the market tanks because of unforeseen factors, well, then I guess everyone’s forecast will miss the mark.
Is this the right year to buy rental income property in Mississauga, Toronto, 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 2017, 2018 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.
Is inflation in Canada a threat to derail the Toronto and Mississauga housing markets? The rates have been steady for quite a while with only a gradual increase for several years. It looks like there may be a small increase however it’s not expected to be enough to upset the housing market in 2018.
Graphic courtesy of inflation.eu
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
There were 976 homes of all type sold in November in Mississauga (down almost 200 units) for a total dollar volume of $634,683,402 at average price of $658,925. Last November, there were slightly less homes of all types sold (921) for a total transaction value of $518,573,645 and the average price was $547,770. Year to year price increase over all on average was $103,000.
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.
|Detached Homes Sold in Mississauga|
|Mississauga 2017f||Mississauga 2016||Mississauga 2015|
|Condos Sold in Mississauga|
|Mississauga 2017f||Mississauga 2016||Mississauga 2015|
|Semi Detached Homes Sold in Mississauga|
|Mississauga 2017f||Mississauga 2016||Mississauga 2015|
The 2nd quarter of the year (April, May, June) is commonly the most brisk time for buying and selling homes in Mississauga. These stats below reveal and almost 15% increase year over year. 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.
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