Average home price officially hits $1 million in Mississauga

 

If you want to purchase a house in Mississauga this year, you'll face a hot market rife with competition and marked by sky-high prices. 

According to data recently released by the Toronto Regional Real Estate Board (TRREB), the average house price in Mississauga has officially crossed $1 million, hitting $1,061,988 in March 2021. 

In a news release, TRREB said that the average home price in the overall Toronto and GTA market climbed by 16.5 per cent year-over-year to hit almost $1.1 million, while home sales soared by 97 per cent to reach 15,652.

TRREB president Lisa Patel interpreted the numbers as a sign that consumer confidence has returned to the market and low mortgage rates are encouraging sales, but warned that they also spell trouble.

"While the robust market activity is indicative of widespread consumer optimism, it is also shedding light on the sustained lack of inventory in the GTA housing market, with implications for affordability," she said in a release.

As for Mississauga, real estate website and brokerage Zoocasa said that a total of 1,411 homes were sold in March, a 38 per cent increase since February. The average price of a home in the city grew steadily by 7 per cent to $1,061,988.  

"Seeing the average price of a home in Mississauga rise to over $1,000,000 is a reflection of what we're seeing throughout the market: a continuing desire for buyers to find more space outside of the urban core," said Zoocasa CEO Lauren Haw.

Zoocasa said detached houses in Mississauga had the biggest year-over-year price growth at 24 per cent, hitting $1,582,786. Semi-detached home prices grew 19 per cent price to hit $1,004,560 and condo townhome prices increased 15 per cent to 769,086. Price growth for condo apartments was in the single digits, up 7 per cent to $584,595.

Zoocasa said all home types in Mississauga saw an increase in sales by 50 per cent or more from last year. 

According to Zoocasa, detached homes saw a 112 per cent increase in sales from last year, with 525 sales in total. Similarly, 391 condo townhouse units were sold (up 74 per cent), 192 semis were sold (up 73 per cent) and 231 condo townhouses were sold (up 54 per cent).

"March of 2021 has been a record-breaking transaction month in the GTA region," Haw said in a statement. 

"This month we saw a massive increase in completed deals but also a 23.5 per cent decrease in property days on market.  This is echoing the high demand and lower listing supply that we've been seeing throughout the first quarter of 2021 and the increased speed at which properties are selling."  

While some of the dramatic sales and price growth can be attributed to favourable borrowing conditions, TRREB said COVID-19 was also affecting year-over-year comparisons.

Almost 8,000 GTA homes with an average price of $902,787 changed hands in March 2020, when the first economic effects of the pandemic materialized and both buyers and sellers were wary of the market.

A year on, available inventory hasn't caught up to the number of people seeking new homes, putting pressure on prices.

The number of listings grew by about 57 per cent to reach 22,709 from 14,434.

The influx in listings is normal for a spring market, but won't take much, if any, of the heat off the market, said Dayle Carmody, a realtor in the region.

"What we're going to see now with another lockdown ... is the market get even crazier again," she said. 

She believes the frenzy is being fuelled by consumer confidence and a mindset shift that happens as people realized their early assumptions about COVID causing the market to crash are unlikely to come to fruition.

As they realize the market is heated, she's seeing people struggle to snag a home and even, reassess their buying goals.

"It just pushes people back into the condo market and they move back down the affordability scale, because if they were hoping to get into a townhouse or semi, now they can't afford it," Carmody said.

GTA condos saw the smallest growth in prices, according to TRREB. The average condo price climbed by 2.6 per cent to $676,052.

The most dramatic price increases were seen in detached housing, where the average price was up by 26.6 per cent to hit $1,402,849.The average semi-detached home sold for $1,045,519, a 17.5 per cent hike, while townhouses spiked by 20.7 per cent at $870,553.

With files from Tara Deschamps, The Canadian Press

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