Here’s Exactly How Much it Costs to Buy a House in Mississauga
If you’re about to go house hunting in Mississauga this summer, you are not alone—people are overcoming their real estate (fears spurred by a volatile 2017 and subsequent government policy initiatives aimed at cooling the market) and getting back into the exciting (it’s truly never boring) world of home buying.
The Toronto Real Estate Board (TREB) recently announced that GTA realtors reported 8,082 home sales through TREB’s MLS system in June 2018 - up 2.4 per cent compared to the low June 2017 result.
TREB says that after preliminary seasonal adjustment, sales were also up 17.6 per cent on a monthly basis between May 2018 and June 2018.
“Home ownership has proven to be a positive long-term investment. After some adjustment to the Fair Housing Plan, the new Office of The Superintendent of Financial Institutions (OSFI) stress test requirement and generally higher borrowing costs, home buyers are starting to move back into the market, with sales trending up from last year’s lows,” says Garry Bhaura, TREB president.
“Market conditions appear to be tightening, with sales accounting for a greater share of listings, as new listings have dropped compared to last year.”
As far as house prices go, they’re generally stable—which, though potentially discouraging for buyers hoping for slightly more affordable properties, is likely comforting to sellers.
TREB says the average selling price edged up by two per cent on a year-over-year basis to $807,871 in June 2018.
“After preliminary seasonal adjustment, the average selling price was also up by 3.3 per cent month-over-month between May 2018 and June 2018,” TREB says. “The MLS Home Price Index (HPI) was down by 4.8 per cent on a year-over-year basis, but remained basically flat month-over-month.”
In terms of numbers specific to Mississauga, Toronto-based real estate website and brokerage Zoocasa say that sales for all categories increased just 0.4 per cent from 829 in May 2018 to 833 in June 2018. Year-over-year, sales are down by less than a percentage point from 837 in June 2017 to 833 in June 2018.
In terms of prices, Zoocasa says average prices for all categories (low and high-rise) decreased by less than a percentage point from $726,897 in May 2018 to $$726,211 in June 2018.
Year-over-year, prices are up by 4 per cent from $699,935 in June 2017 to $726,211 in June 2018.
As far housing availability goes, Zoocasa says active listings (inventory) increased by 1 per cent from 1,736 in May 2018 to 1,757 in June 2018. Year-over-year, active listings are down by 8 per cent, at 1,901 in June 2017 and 1,757 in June 2018.
“Real estate is a positive long-term investment. Despite rising interest rates and new mortgage laws, home buyers are returning to the market as sales are gradually beginning to trend upwards again from last year’s lows,” says Lauren Haw, Zoocasa CEO.
“We’ll be closely monitoring inventory levels in Mississauga over the coming months to examine if supply will be an issue (taking note of this month’s 8 per cent decline in year-over-year active listings). A decrease in active listings often results in upward pressure on home prices.”
In terms of numbers specific to the entire GTA, a detached house in the 905 currently costs about $928,560 (slightly down from $929,401 in May). A semi costs about $665,606 (slightly down from $665,628), towns are selling for $608,969 (a little down from $609,923) and condos are costing buyers about $450,672 (down from $455,413).
TREB expects sales activity to pick up.
“The expectation is to see improvement in sales over the next year. Over the same period, however, it is likely that issues surrounding the supply of listings will persist,” says Jason Mercer, TREB’s director of market analysis and service channels.
“This suggests that competition between buyers could increase, exerting increased upward pressure on home prices. With a new provincial government in place and municipal elections on the horizon, housing supply should be top-of-mind for policy makers.”
As far as policy makers go, TREB says it will continue to speak out for buyers, sellers and renters—especially as Ontario adjusts to a new provincial government and municipal elections get underway.
“We look forward to working with all returning and newly elected MPPs, and speaking out during the municipal election campaign, to ensure that home ownership and housing affordability issues are a top priority for elected officials,” says Bhaura.
“In this regard, one of the most important issues is ensuring that no new municipal land transfer taxes are imposed on home buyers. We hope the new provincial government and municipal election candidates will represent the views of the people on this issue, which are clear: they oppose land transfer taxes because they are a barrier to home ownership and discourage individuals and families from ‘right-sizing’, further constraining the supply of homes available for purchase.”
TREB says a poll conducted by Ipsos Public Affairs by an online survey of 1,200 GTA residents (500 in the 416 area code and 700 in the 905 area code) between May 18 and May 22 found that 77 per cent of respondents support reducing the provincial land transfer tax and 68 per cent support repealing the provincial land transfer tax
The poll also revealed that 76 per cent of respondents support reducing the Toronto municipal land transfer tax and 69 per cent support repealing the Toronto municipal land transfer tax
“We look forward to working with the provincial and Greater Toronto Area municipal governments on effective ways to address housing affordability, namely increasing housing supply, especially ‘missing middle’ housing options (home types that bridge the gap between detached houses and condominium apartments), and reducing tax burdens like land transfer taxes,” says Bhaura.