Here is Where House Prices are at in Mississauga
Many residents in Mississauga and beyond want to own homes and the housing market still remains the subject of heated debate and intense controversy after months (probably years, to be fair).
How feasible is that dream?
Here are the latest figures released on June 4.
The Toronto Real Estate Board (TREB) is reporting 7,834 sales through TREB’s MLS system in May 2018.
Down by 22.2 per cent compared to May 2017.
While the number of sales was down year-over-year, the annual rate of decline was less than reported in February, March and April, when sales were down by more than 30 per cent.
On a month-over-month basis, seasonally adjusted May sales were basically flat compared to April 1.
Supply of homes available for sale continued to be an issue. New listings were down by 26.2 per cent. The fact that new listings were down by more than sales in comparison to last year means that competition increased between buyers.
Recent polling conducted by Ipsos for TREB suggests that listing intentions are down markedly since the fall.
“Home ownership remains a sound long-term investment,” TREB president Tim Syrianos.
“Unfortunately, many home buyers are still finding it difficult find a home that meets their needs.”
In Mississauga specifically, here’s how it breaks down.
Zoocasa, a Toronto-based real estate website, said that sales for all home types increased increased 5 per cent from 791 in April 2018 to 829 in May 2018.
Year-over-year, sales are down by 23 per cent from 1,071 in May 2017 to 829 in May 2018.
It also looks like buyers have a little more stock to choose from.
Active listings (inventory) increased by 15 per cent from 1,511 in April 2018 to 1,736 in May 2018, according to Zoocasa. Year-over-year, active listings are exactly flat, at 1,736 in May 2017 and 1,736 in May 2018.
In terms of prices, they’re about the same in Mississauga.
Average prices for all categories increased by less than a percentage point from $721,160 in April 2018 to $726,897 in May 2018. Year-over-year, prices are down by 4 per cent from $760,645 in May 2017 to $726,897 in May 2018.
“The spring real estate market is off to a strong start in Mississauga,” said Zoocasa CEO Lauren Haw.
“We’re starting to close the gap from 2017, with sales down only 23 per cent since last May, compared to the higher year-over-year declines we saw in February, March and April.”
Sales, prices and inventory are stable compared to last month, “meaning we have entered a balanced market environment. The number of buyers and sellers is equalized, which should lead to stability in terms of growth,” said Haw.
In a recent Canadian Centre for Economic Analysis study undertaken for TREB, “it was found that many people are over-housed in Ontario, with over five million extra bedrooms. These people don’t list their homes for sale, because they feel there are no alternative housing types for them to move into. Policy makers need to focus more on the ‘missing middle’ - home types that bridge the gap between detached houses and condominium apartments.”
The MLS Home Price Index (HPI) composite benchmark was down by 5.4 per cent year-over-year. The average selling price for all home types combined was down by 6.6 per cent to $805,320. On a seasonally adjusted basis, the average selling price was up by 1.1 per cent compared to April 2018.1
“Market conditions are becoming tighter in the Greater Toronto Area and this will provide support for home prices as we move through the second half of 2018 and into 2019,” said TREB’s director of market analysis Jason Mercer.
“There are emerging indicators pointing toward increased competition between buyers, which generally leads to stronger price growth. In the City of Toronto, for example, average selling prices were at or above average listing prices for all major home types in May.”
Housing Issues Important to Voters
TREB released results of a poll on June 4. It was conducted by Ipsos Public Affairs regarding issues relevant to the upcoming provincial election.
“Housing and real estate issues are top of mind for many Ontario and GTA voters, and they often turn to their realtor for opinions on these matters,” said Syrianos. “That’s why we think it’s important to help shine the spotlight on these issues during the provincial election campaign.”
The poll, conducted by on-line survey of 1,200 GTA residents (500 in 416 and 700 in 905) between May 18 and May 22, found that:
- Among nine listed issues (health care, government spending/balancing budget, taxes, housing affordability, energy costs, economy, transportation/traffic, environment/climate change, enhancing social programs), 25 per cent of GTA residents rank housing affordability in their top two most-important issues for the Ontario election campaign;
- 69 per cent agree (35 per cent strongly/34 per cent somewhat) that a party’s platform on housing affordability will influence who they vote for on election day;
- Nearly six in ten (56 per cent) of GTA residents believe that government policies should focus equally on increasing the supply of housing and reducing the demand of housing; few believe that they should only be focused on reducing demand;
- 77 per cent of GTA residents support reducing the provincial land transfer tax and 68 per cent support repealing this tax completely.