Mississauga housing market to favour sellers in 2021, prices expected to rise 4%
The Mississauga housing market is in store for another seller’s market in 2021, thanks to continuing challenges in housing supply and rising prices. Low inventory has been a common trend across many Ontario housing markets, putting upward pressure on prices. Indeed, Mississauga residential sale prices rose to $880,374 in 2020 (Jan. 1-Oct. 31) compared to $760,345 in 2019 (Jan. 1-Dec. 31). With supply levels expected to be a top concern in 2021, the RE/MAX outlook for Mississauga real estate is an increase of 4% in average price to approximately $915,588.
Housing inventory currently sits at 1.5 months, and days on market are expected to hold steady in 2020.
Who’s driving demand for Mississauga real estate?
Since the start of COVID-19, there has been a shift from high-rise spaces of smaller size to larger spaces with backyards. This has been a common trend across many Canadian housing markets as well as regions abroad, as homebuyers seek more square footage and green space outside of urban areas in the wake of the pandemic.
This new buyer sentiment is anticipated to continue in Mississauga in 2021, but it is thought that once COVID-19 is more under control, the region will see a return to its pre-COVID environment.
In 2021, move-up buyers are expected to drive the market, most of them looking for two-story detached homes. First-time homebuyers in the region are typically young couples looking for condominiums priced between $450,000 and $550,000. Meanwhile, demand for luxury properties has increased since the start of COVID-19, and is driven by move-up buyers. Recently the reduction of supply has put significant pressure on prices, with the average home price of a luxury property starting at $2,300,000.
The top three neighbourhoods in Mississauga, based on 2020 sales, are City Centre, Hurontario and Churchill Meadows. Next year, these areas will continue to be in high demand based on their relative affordability, access to public transit, and access to amenities.
Canadian Housing Market in 2021
Canadians are on the move. RE/MAX isn’t calling this an “exodus,” but the re-location trend across the Canadian housing market is real, and it’s just one focus of the RE/MAX 2021 Housing Market Outlook Report. RE/MAX Canada anticipates healthy housing price growth at the national level, with move-up and move-over buyers continuing to drive activity in many regions across the Canadian housing market. An ongoing and widespread housing supply shortage is likely to continue, presenting challenges for homebuyers and putting upward pressure on prices.
Due to these factors, the 2021 RE/MAX 2021 outlook for average residential prices is an estimate of +4% to +6% nation-wide. Here’s the regional break-down:
Additional report findings include:
- 35% of RE/MAX brokers indicate that “move-over” buyers from other cities and provinces will continue to spark market activity in 2021
- 45% of RE/MAX brokers indicate that move-up buyers will likely be a primary driver of the housing market demand in 2021
- Half of Canadians (53%) are confident that Canada’s housing markets will remain steady in 2021
- 52% of Canadians believe real estate will remain one of the best investment options in 2021
“We’ve seen a lot of anecdotal evidence since the summer that households are considering significant lifestyle changes by relocating to less-dense cities and neighbourhoods,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada. “This has sparked unprecedented sales this year in suburban and rural parts of Canada and we expect this trend to continue in 2021.”