September has seen an uptick in activity from both buyers and sellers as the third rate cut seems to have finally made the difference. Many sellers have struggled to achieve the result they were looking for in a buyers market and we are seeing signs of a balanced market as we move through the month, primarily in the detached segment.
Home prices are stabilizing- as of August, the average home price in Mississauga is $1,044,000 - a modest decline from $1,057,000 In August 2023 affected primarily by a drop in condo prices. A key economic factor influencing the market is the recent reduction in the Bank of Canada’s (BoC) policy interest rate. As the BoC lowered its key overnight rate to 4.25% from 5%, we expect this shift to provide some relief to buyers, and will help stimulate more activity in the housing market. Overall, South Mississauga’s real estate market is adjusting to increased inventory with slower sales, and a more balanced buyer-seller dynamic.
Insights:
- In August 2024, total home sales in Mississauga reached 466 units, reflecting a 7.7% decline compared to August 2023. Detached home sales dropped slightly by 1.2%, while semi-detached homes saw a sharper decline of 12.2%. The condo segment, which includes both apartments and townhouses, showed mixed results: condo townhouse sales increased by 2.4% year-over-year, but condo apartment sales declined by -13.5% during the same period.
- Overall, inventory is up by 45% compared to last year which is the most significant change that will affect the fall results. This provides opportunities for buyers, especially those looking at condos, as their prices have dropped more significantly than other property types. Sellers of condos may need to adjust their expectations on both pricing and the time needed to close deals.
- The demand for luxury homes in South Mississauga remains strong, but buyers are more cautious given the current economic environment. Lorne Park and Mineola have seen an uptick in luxury detached sales during the 2nd quarter and we expect this to continue as new properties are coming to market.
Overall, the South Mississauga real estate market is balancing between increased inventory and slower sales, however the Bank of Canada’s recent rate cuts should have a positive impact on sales as we move through the fall. We are anticipating 2 further rate cuts by the end of the year.
If you are considering a move in the near future, now is a good time to join our Sellers Workshop where you will gain good insights on what it takes to achieve a successful outcome in todays competitive real estate market. See our sign up on the back of this newsletter. Contact us today if you are considering a move 905.278.7355.
