We can sum up the current real estate market in the GTA in 2 words- interest rates. There has been a lot of talk over the past month about where the interest rates are headed for 2019. A short month ago, economists were predicting another rate hike by the Bank Of Canada. A week ago, we read the BOC was putting rate increases on hold- and a short week later the Royal Bank announced a rate cut to its 5 year mortgages to 3.74% from 3.89%.
Some of the reasons: BOC is forecasting a 1.7% growth in GDP- down from its previous projection of 2.1%. This coming from a few key factors- housing activity has been weaker than expected and is taking longer to stabilize- especially in the GTA. This is primarily due to the stress test measures sparked by policy changes that were put in place last year- as well as interest rate increases. The recent significant drop in oil prices and the unstable global trade issues are also key factors. The BOC key interest rate sits at 1.75% now which is up a full point up from 2 years ago. It makes it hard to predict how the season is going to start off.
What does this mean for us here in the GTA- and specifically in South Mississauga? The forecast is a 2% increase overall in unit sales for 2019- ‘there will be pockets that are strong and some weak’ is our prediction.
“We live in a stable and desirable area with planned intensification over the next 10 to 15 years”, says Kevin Larose of the Larose Team. “As many as 40 to 50 thousand new residents are going to be calling this area home over the next 2 decades- this is significant.”
There are numerous new developments planned for all the way from Lakeview to Clarkson- everyone wants to live near the lake. This should bode well for all housing types- especially single family as more of the planned developments include multi unit condos and townhouses.
Look for our new ‘Lakeview Developments’ section in our newsletter- we will keep you posted on new and pre-construction activity on a monthly basis. Exciting times!
MISSISSAUGA - CONDO MARKET UPDATE
December real estate sales in Mississauga took a slight downturn for the second straight year.
The latest monthly sales tracking figures from the Toronto Real Estate Board (TREB), showed 7,746 total sales (detached and condo) in Mississauga which represented a 16.4 percent drop compared to December 2017 at 9,269 sales.
The best performing sector of the market last year came in townhome-style condos, which saw an average price increase of $569,397 compared to $519,483 in December 2017- a 9.6 percent annual spike. Apartment-style condos saw a year over year average price growth from $401,024 last year to $427,560 last month.
In Mississauga, there were 127 condo sales in December 2018 compared to 180 condo sales in December 2017. There was a year over year drop in both new and active listings, with 109 new and 199 active, compared to 187 new listings and 284 active listings in December the previous year.
There was a slight change in the amount of average days on market for Mississauga condos, which was 27 days this year compared to 23 days last December.
Looking ahead into 2019, many still predict that due to their lower price point and relative affordability (compared to the detached housing market), the condo market will continue its strength and modest price gains and continue to be the most desirable fit for homebuyers.
PRE-CONSTRUCTION CONDOS & TOWNS
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