May 2018 – Greater Toronto Area REALTORS® reported 7,792 sales through TREB’s MLS® system in April 2018- down 32.1% on a year-over-year basis. The average selling price was $804,584 - down by 12.4 per cent. As a comparison, unit sales in Mississauga were 1,127 in April - down 42% and the average price of $721,160 fared a little better than Toronto down 10.4% over last year.
Canada’s housing markets have been adjusting to measures meant to cool them down- from taxes on foreign buyers primarily in the GTA and Vancouver, to new mortgage ‘stress test’ rules. This has eliminated some buyers who were perhaps not properly pre-qualified to buy in the price range they wanted to buy in. “Buyers will soon adjust their expectations to a less expensive home” says Kevin Larose from the Larose team.
Another major factor in declining sales in April was a reduction in new listings as sellers have sat on the sidelines waiting for the market to strengthen. The stats show for April, the number of new listings in Mississauga fell by 36% (736 units) - a factor that has helped keep prices relatively stable as the volume of sales has declined.
Changes in the type and price point of homes being purchased has also impacted the overall results. This is especially clear at the higher end of the market where detached home sales for $2 million plus accounted for 5.5 per cent of total detached sales in April 2018, versus 10 per cent in April 2017. The luxury market in the GTA has experienced a steep 68% decline in unit sales for the first quarter of 2018.
Recent polling conducted for TREB shows that the great majority of buyers are purchasing a home within which to live. It looks like the speculators have gone to Montreal as the city is experiencing a mini boom” says Kevin Larose of the Larose Team. This means these buyers are treating home ownership as a long-term investment which is a good sign for both buyers and sellers. “Buyers are looking at ‘community first’ when making their purchasing decision now and coveted neighbourhoods here in south Mississauga will only continue to become more desirable.”
If you are considering a move, timing couldn’t be better as we are entering the height of the Spring market. Sales and prices peak at this time of the year- see the graph below.
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STEADY GROWTH CONTINUES IN THE MISSISSAUGA CONDO MARKET
As we head into what is traditionally the busiest real estate season of the year, we are continuing to see a steady growth, though we aren’t seeing the increase in month-to-month numbers we saw earlier this year. But as we’ve seen since January, this is definitely the condominium’s year.
Mississauga condo sales and prices have been steadily rising. And it seems that purchasing a condo is the more preferred choice for homebuyers and as it’s still the more affordable housing option.
Although month-to-month average pricing stayed relatively the same, apartment style condominiums gained 5.6 percent at an average sale price of $435,254 compared to $412,241 a year before.
There were 249 condominium sales in April compared to 360 condominium sales in April the year before, and the amount of listings was lower, with 372 new listings compared to 497 new listings from the previous April.
“The comparison of this year’s sales and price figures to last year’s record peak masks the fact that market conditions should support moderate increases in home prices as we move through the second half of the year, particularly for condominium apartments and higher density low-rise home types,” said Jason Mercer, TREB’s director of market analysis.
LIVE IN THE SOUTH MISSISSAUGA COMMUNITIES?
Download our April Newsletter to see the first quarter year-over-year stats for number of houses sold, average price, says on market, and sale-to-list price.
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