Mississauga July 2020 - The strength of the housing market recovery in the GTA has been surprising to say the least. July saw one of the largest gains on the Toronto Real Estate Board in years as the average price of a home topped the record breaking prices set in April 2017. Covid-19 hasn’t dimmed expectations for Canadians looking to own their own home.
Detached homes led the way with a 14 percent increase in the 905 areas of the GTA in July with an average sale price of 1.06 million. Condo prices rose 10 percent in the same areas.
Mississauga reported strong results in July with unit sales up 17% and an increase in average price of of 18%. Total new listings were up significantly on a year-over-year basis by 27% percent although the number of active listings at the end of July were down by 7.0 percent.
Historically sales dip in July however, with pent-up demand from COVID-19 related closures, July saw strong gains that made up from the lack of activity in the spring season.
Our Insights as to why prices are increasing:
• Competition between buyers is accelerating which is resulting in multiple offers and is fuelling price increases. Listing agents continue to set offer dates for properties as a strategy to drive up the price
• New property listings are not keeping pace with the sales which is also putting upward pressure on prices
• With the popular five year fixed mortgage currently less than 2 percent, there is more demand today than pre Covid- 19. With rates this low, it costs less to carry the mortgage which has an effect on affordability
• Investors are taking advantage of the low rates as they compete for properties and add to the buyer pool
• We are seeing a spike in demand for larger properties with more space as more people have decided to continue working from home
• Buyers are looking outside of the downtown core and the areas of south Mississauga are more affordable. With larger lots, great schools and the advantage of only one land transfer tax (which saves $), our area has become a hot spot
• The strong recovery in residential real estate has given confidence to developers to launch new projects- especially condo projects here in Port Credit
Bottom line is, it’s really hard to lose money in Toronto real estate and we don’t see things changing much as we move into fall. If you are considering selling over the next 6 months, now would be a great time to talk with us to get a current market evaluation of your property. It’s probably gone up in value and worth more than you think.