Here’s how much Mississauga house prices increased in 2019

 

A new year is here, but whether or not 2020 will be a good year for prospective homebuyers (especially those hoping to enter the market for the first time) remains to be seen—especially since a persistent lack of supply drove prices in Mississauga even higher in 2019. 

According to the recently-released Royal LePage House Price Survey, the aggregate price of a home in the Greater Toronto Area (GTA) increased 4.8 per cent year-over-year to $843,609.  

The price appreciation was more pronounced in Mississauga.

According to the survey, the aggregate price of a home in Mississauga increased 7.9 per cent year-over-year to $788,150. The median price of a condominium rose 9.1 per cent year-over-year to $457,937, while the price of a standard two-storey home increased 9.0 per cent to $910,365. 

The median price of a bungalow declined slightly in the fourth quarter, decreasing 0.9 per cent year-over-year to $833,627.

In the GTA overall, the median price of a standard two-storey home increased 4.4 per cent year-over-year to $982,944 and the price of a bungalow rose 2.4 per cent year-over-year to $806,977. During the same period, condominiums in the region continued to see strong price appreciation, with the median price rising 7.8 per cent to $565,919.

"Home price growth in the GTA remained strong in the fourth quarter of 2019 as low supply fueled both the condo and detached segments," the survey reads. 

"Significant price gains were seen in Pickering and Mississauga, where the aggregate price increased 9.7 per cent and 7.9 per cent year-over-year, respectively. The aggregate price of a home in the City of Toronto increased 6.6 per cent year-over-year," the survey says. 

As for what's driving the price increases, real estate experts say low interest rates, buyer adjustment to market cooling measures (such as the mortgage stress test and tax on speculators and foreign buyers) and a lack of new housing supply are all working to tighten the market. 

Unfortunately, it doesn’t look like prices are about to fall anytime soon. 

"The Greater Toronto Area is at a pivot point where we are seeing signs that prices could begin to rapidly increase," said  Kevin Somers, Chief Operating Officer, Royal LePage Real Estate Services Limited. 

"The region has a very low supply of listings while we are seeing more potential buyers trying to enter the market."

Ajax and Oshawa were the only two regions to show a year-over-year decline in aggregate price. The aggregate price of a home in Ajax and Oshawa decreased 1.2 per cent and 1.8 to $661,049 and $524,423, respectively.

So, how are things looking in other cities? 

The survey says that homes in Toronto saw strong price appreciation in the fourth quarter of the year, with an aggregate price increase of 6.6 per cent year-over-year. The median price of a standard two-storey home and bungalow increased 6.3 per cent and 3.8 per cent to $1,325,189 and $894,769 respectively.  

The median price of a condominium in Toronto increased 8.1 per cent year-over-year to $621,884.

The aggregate price of a home in Brampton increased 5.0 per cent year-over-year to $743,118. The median price of a condominium increased 9.2 per cent year-over-year to $412,868. During the same period, the median price of a standard two-storey home and bungalow increased 4.9 per cent and 4.6 per cent year-over-year to $768,932 and $672,076 respectively. 

According to the survey, the aggregate price of a home in Oakville increased 1.5 per cent to $1,096,588 in the fourth quarter. The median price of a standard two-storey home increased 2.2 per cent year-over-year to $1,212,883 while bungalows decreased 3.8 per cent year-over-year to $917,271.

Vaughan's aggregate home price increased 2.2 per cent year-over-year in the fourth quarter to $995,792. The median price of a standard two-storey home and bungalow increased 1.8 per cent and 0.9 per cent year-over-year to $1,090,690 and $1,275,468, respectively. The median price of a condominium increased 7.4 per cent to $509,561.

Milton's aggregate home price increased 5.0 per cent year-over-year to $765,395. The price of a standard two-storey home, bungalow and condominium increased 5.0 per cent, 4.4 per cent and 4.8 per cent year-over-year to $797,267, $798,307 and $457,265, respectively.

In the Royal LePage Market Survey Forecast released in December, the real estate brokerage predicted that the aggregate price of a home in the Greater Toronto Area would increase 4.75 per cent year-over-year in 2020, rising to $883,700.

Nationally, the aggregate price of a home in Canada increased 2.2 per cent year-over-year to $648,544 in the fourth quarter of 2019. 

Further changes to mortgage policies could make the market even more attractive buyers. 

"The federal government has signaled that changes could come to the mortgage stress test mechanism in 2020," said Phil Soper, president and CEO, Royal LePage. 

"The stress test pushed people out of real estate markets across Canada temporarily. For the most part, buyers have adjusted, yet it still represents a significant hurdle as families pursue the dream of owning their own home."

Cover photo courtesy of @idris.yyz

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