Here’s how much some home prices have risen in just one year in Mississauga
While many people are struggling to purchase more "affordable" properties in Mississauga and surrounding cities (the Toronto Region Real Estate Board says that in Mississauga, the average price of a detached home reached $1,187,718 in January 2020, while semi-detached home prices reached $817,432, townhouses reached $794,859 and condos reached $539,788), there's still demand for more luxurious home types.
And, as one might expect, those prices are climbing too.
According to Royal LePage, luxury home prices are on the rise in the greater regions of Montreal, Toronto, and Ottawa.
In Toronto, the GTA (which includes Mississauga), and Montreal, the lack of available housing and a high degree of demand drove prices higher in 2019 (a trend that's continuing well into 2020). The supply issue is due, in part, to the fact that current homeowners feel they won't find a suitable place to move into should they decide to list their home.
But while the market is hot and challenging, it's on fire for a reason—people want to live in the GTA and will pay big bucks to do it.
"Luxury condominiums in Toronto saw significant price appreciation as the region's international reputation continues to grow," said Kevin Somers, Chief Operating Officer, Royal LePage Real Estate Services Ltd., in a statement.
"Demand has remained healthy for luxury houses in Toronto and Ottawa, however, Montreal's detached luxury home market continues to show significant upward price momentum."
In Western Canada, both the greater regions of Vancouver and Calgary showed year-over-year declines in luxury home prices.
As for what's happening in the GTA, Royal Lepage says that over the past 12 months, the median price of a luxury house in the area rose 1.2 per cent to $3,629,916 while the median price of a luxury condominium rose 7.0 per cent to $2,402,650.
According to the company, buyers with deep pockets are also struggling to find homes.
"Luxury buyers face the same low inventory scenario that challenges the overall residential market," said Steven Green, sales representative, Royal LePage Partners Realty, in a statement.
"Some of the city's most desirable pockets have a very low inventory of listings, which is unfortunate for sellers who want to move up in the same neighbourhood."
Green also says that the high demand for condominiums reflects the range of buyers the housing type attracts.
Not surprisingly, Royal Pelage says that boomers and young executives looking for low maintenance, luxury condos are competing against investors and foreign buyers also seeking a low maintenance property to use as a secondary residence.
Over the next year, luxury houses are expected to increase by 2.5 per cent to $3,721,000 while luxury condominiums are forecast to increase 6.0 per cent to $2,547,000.
As for the regular housing market, lower and middle-income buyers will also see prices climb as the supply and demand imbalance persists. According to 2019 Royal Lepage report, house prices are forecast to climb up to 5 per cent in Mississauga in 2020.
Are you planning on buying a house this year in Mississauga?
- CAUGHT ON VIDEO: Anti-masker's racist rant in Mississauga grocery store
- Trendy new ice cream hotspot now open in Streetsville in Mississauga
- Toy store with locations in Mississauga files for bankruptcy
- Restaurant in Square One in Mississauga appears to have closed down for good
- Mississauga passes mandatory mask bylaw