Home sales down 42.9% in Mississauga in June
Published July 6, 2022 at 1:50 am
The housing market continues to cool in Mississauga as the latest real report notes a large decline in units sold.
in May, the stats showed home sales dropping even as prices continued to increase — particularly in the condo market in Mississauga.
The stats are now in for June and it looks like sales are continuing to drop.
The number of homes sold through the MLS System in Mississauga was 596 units in June 2022, a large decline of 42.9 per cent from one year ago, according to the latest report from the Mississauga Real Board.
Home sales were 26.9 per cent below the five-year average and 38.8 per cent below the 10-year average for the month of June.
On a year-to-date basis, home sales totaled 4,375 units over the first six months of the year. This was a substantial reduction of 31.9 per cent from the same period in 2021.
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“There has been a noticeable shift in market conditions in our region over the last few months, driven in part by the Bank of Canada’s aggressive attempt to tame inflation,” said Nelson Goulart, president of the Mississauga Real Estate Board. “Consequently, a rapid rise in mortgage rates, has softened demand in our local market.”
Goulart said the number of resale homes changing hands in June was significantly below normal for this time of year.
“The combination of below average demand and the increased number of new listings drove overall inventory to the highest level since the fall of 2020,” Goulart continued.
Both average price and the Home Price Index (HPI) Composite Benchmark price declined for the third straight month, he said.
“It is reasonable to expect that as mortgage rates continue to rise, demand and affordability will be further impacted in the short term at the very least and likely through the end of the year.”
Despite the decline in sales, it will likely still cost more than $1 million to buy a home in Mississauga.
The overall MLS HPI composite benchmark price was $1,184,400 in June 2022, an increase of 9.6 per cent compared to June 2021. The MLS HPI tracks price trends far more accurately than is possible using average or median price measures.
The benchmark price for single-family homes was $1,492,000, a moderate gain of 8.8 per cent on a year-over-year basis in June. By comparison, the benchmark price for townhouse/row units was $859,300, increasing by 12.5 per cent compared to a year earlier.
Condo units continue to see higher increases compared to houses. The benchmark apartment price was $711,200, a gain of 22.8 per cent from year-ago levels.
Overall, the average price of homes sold in June 2022 was $1,093,743, up 7.3 per cent from June 2021.
The more comprehensive year-to-date average price was $1,168,471, advancing 14.5 per cent from the first six months of 2021.
Despite the increase in prices, the dollar value of all home sales in June 2022 was $651.9 million, a significant decline of 38.7 per cent from the same month in 2021.
And there are more housing going on the market.
The number of new listings saw a small gain of 2.2 per cent from June 2021. There were 1,612 new residential listings in June 2022. This was the largest number of new listings added in the month of June in five years.
New listings were 6.2 per cent above the five-year average and 6.1 per cent below the 10-year average for the month of June.
Active residential listings numbered 1,526 units on the market at the end of June, a substantial gain of 49.3 per cent from the end of June 2021.
Active listings were 8.4 per cent above the five-year average and 10.8 per cent below the 10-year average for the month of June.
Months of inventory numbered 2.6 at the end of June 2022, up from the one month recorded at the end of June 2021 and above the long-run average of 1.8 months for this time of year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.
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