The coronavirus pandemic has impacted Canadians across the country. As many businesses shuttered when the pandemic hit, the real estate industry continued to operate as an essential service. Buying agents have been leveraging technology to help their clients find the perfect home. Meanwhile, listing agents have adopted 3D virtual tours and e-signatures to complete transactions safely.
For those on the hunt, the Mississauga market may be on their radar as they sort through real estate listings. As one of Ontario’s key markets (the sixth-largest in the country), Mississauga remains an attractive option for many.
And it’s no wonder, considering Mississauga’s high level of livability and proximity to downtown Toronto, access to public transit, highways, Lake Ontario and the airport. These amenities also seem to be drawing in large companies to set up shop in this city, with homebuyers flock to the city as well.
Here’s what the Mississauga housing market looks like:
Home Prices Remain Stable in Mississauga
Prior to the coronavirus, house prices in Mississauga were expected to increase by 5% in 2020, according to the 2020 Housing Market Outlook Report. Yet, it’s important to be aware that Mississauga is an expensive market – and one of Canada’s least affordable cities, behind Toronto and Vancouver.
However, within the Mississauga housing market there are a range of options which result in varied pricing. Some of the more affordable neighbourhoods in Mississauga are Malton, the older parts of Meadowvale or Lisgar. On the opposite end of the spectrum the least affordable neighbourhoods are Mineola, Port Credit and Lorne Park.
In May the average sale price of a detached home in Mississauga was $1,118,835. On the other hand, the sale price of semi-detached homes was $795,856; $756,251 for townhouses, and $498,640 for condos. For sellers it doesn’t seem like they’ve needed to drop sale prices in this market yet. In fact, homebuyers in the area were purchasing homes for 98% of the listed sale price, which points to price stability in this market.
For those thinking about searching for a home in this market, upfront affordability may be a challenge, with . However, the Bank of Canada has recently lowered its benchmark interest rate to 0.25% which means homebuyers will pay less in interest over their mortgage term. This low-interest rate environment is likely to remain in place for some time, as the economy recovers from COVID-19.
Home Sales in Mississauga
The latest sales data from the Toronto Regional Real Estate Board says 927 homes were sold in the Region of Peel in May, a 78% increase month-over-month, but down 57% on a year-over-year basis. Yet, current market conditions can be attributed to factors related to the coronavirus pandemic and public health safety measures. Some buyers and sellers may opt for a wait-and-see approach which is affecting the overall number of home sales.
However, as the economy reopens, pent-up demand in the Greater Toronto Area including Mississauga, is expected to ramp up near the end of summer and in early fall. Economists are predicting that this tough blow to the real estate market won’t last long. Previously, home sales in Mississauga were high with year-over-year growth.
The market is expected to begin its recovery as businesses reopen and employment rates start to climb, along with consumer confidence. In the meantime, those with job security and cash on hand for a down payment, will likely continue to engage with the Mississauga market.
Don’t underestimate the Mississauga market. The Toronto Regional Real Estate Board consumer sentiment survey indicated that many in the GTA still plan on making a home purchase within the next 12 months. We may soon see more activity as social distancing measures are lifted. People will once again want to take advantage of everything this city has to offer.