GTA Home Sales Expect to Rebound in 2019

January 2019- Mississauga fared better than Toronto in January according to TREB data just released this week.

Unit sales in Mississauga were up approximately 7% compared to a decrease in detached and condo sales for the City of Toronto. TREB analysts are predicting 83,000 homes will be sold in the GTA in 2019- a 7.3% increase over 2018.  In the opening weeks of 2019, listings for good properties are hard to come by and buyers are having to compete. Buyers are displaying confidence in the market that hasn’t been there since 2017.

‘It’s no surprise that real estate continues to be a solid investment now and into the future’ according to Kevin Larose of the Larose Real Estate Team. Sales in South Mississauga are showing strong growth so far- here are our
predictions for 2019:

For Sellers- prices are up more than 55% over the past 5 years in Mississauga. In Jan 2019, unit sales are up 11.7% which is quite a significant difference from the downtown core. ‘Buyers are looking in South Mississauga as a great alternative to raise their families or downsize says Kevin.

With many new detached, condo and townhome communities planned for Lakeview, Port Credit and Clarkson, there will be great options for downtown buyers. “An easy commute, proximity to the lake- and don’t forget we only have the one land transfer tax $ which is half of what you will need to close a property in the 416 area. It makes this area a very attractive option.”

A recent Ipsos-Reid survey found 45% of buyers have adjusted the type of home they intend to purchase due to price, and 31% said they would shop in a different location. According to Treb, we aren’t going to get back to a record level of home sales until we see more activity on the first time home buyer front.

What can we expect from mortgage rates? The mortgage industry has complained the stress test sets and unnecessarily high bar especially now that interest rates have increased. ‘We don’t see rates climbing in the first half of 2019’ says Kevin Larose. ‘Quite the opposite- there is a very good chance we will see rates fall in the short term.’ This should set the stage for a balanced spring market with buyers already pre approved for what they can afford’ says Kevin. It will leave some room for price increases in the prime locations.

The next BOC rate adjustment is set for March 6th.

FEBRUARY CONDO UPDATE

The Toronto Real Estate Board (TREB) just released a their January stats, and though the inclement weather took its toll during the last week of that month, there was still an increase in transactions compared to last year.

There were 4,009 home sales through TREB’s MLS in January 2019, up by 0.6 percent compared to the previous year. The MLS HPI Composite Benchmark price was up by 2.7 percent compared to January 2018, with the Toronto condo apartment market segment in particular showing the most price growth- up 8.8 percent on a year over year basis with the average sale price of $591,444.  

In Mississauga’s condo market this past January, the average price was $441,669, up 10.04 percent compared to $401,358 from the previous year.

There were 149 condo sales in January 2019, compared to 161 condo sales in January 2018. There was a year over year growth in new listings, with 268 new compared to 239 in January the previous year. There was just a slight decrease in active listings, with 241 active listings last month compared to 253 active listings in January 2018.

There was a slight change in the amount of average days on market for Mississauga condos, which was 26 days this year compared to 29 days last January.

Many speculate that as far as the entire GTA goes in 2019, home price growth will largely be driven by the condo market segment- as condos are the most affordable home types and the most in-demand.

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