Home sales drop nearly 50% in Mississauga, Brampton and Caledon
Published August 4, 2022 at 10:54 am
Home sales took a nose dive last month, dropping nearly 50 per cent compared to this time last year.
The drop in sales in Mississauga, Brampton and Caledon reflects the overall picture for the GTA, according to the Toronto Regional Real Estate Board (TRREB) July 2022 report.
Across the GTA home sales were down by 47 per cent in July 2022 compared to July 2021. New listings also declined on a year-over-year basis in July, albeit down by a more moderate four per cent, the report notes.
In Mississauga, 440 homes (of all types) sold in July 2022, compared to 920 in July 2021, according to the TRREB report. Brampton saw 406 homes sell in July 2022 compared 958 this time last year. And Caledon only had 40 homes sell in the month of July, down from 102 in July 2021.
Home prices continue to cool.
The average price for a detached home in Brampton was $1,212,988 in 2022 down from $1,214,841 in July 2021. In Mississauga the detached home average price was $1,589,123 in July 2022 up very slightly from $1,551,658 in 2021. Caledon has a similar story — an average detached home was $1,660,778 in July 2021 compared to $1,634,845.
Across the GTA, the average selling price was up by 1.2 per cent compared to July 2021 to $1,074,754. Less expensive home types, including condo apartments, experienced stronger rates of price growth as more buyers turned to these segments to help mitigate the impact of higher borrowing costs, according to TRREB.
JUST RELEASED! #TRREB urges governments to address affordability challenges and boost housing supply in the latest #MarketWatchReport🏠. Access the full report for insights on July market stats, statements from TRREB Experts & More ➡️🔗 https://t.co/mPT7w8738z ⬅️ pic.twitter.com/fqAXG1aZyz
— Toronto Regional Real Estate Board (@TheReal_TRREB) August 4, 2022
TRREB says population growth and tight labour market conditions will mean prices will continue to increase because of the lack of new housing.
“Despite more balanced market conditions resulting from rapidly increasing mortgage rates, policymakers must continue to take action to boost housing supply to account for long-term population growth,” said TRREB Chief Market Analyst Jason Mercer.
With savings high and the unemployment rate still low, home buyers will eventually start borrowing again.
“When they do, we want to have an adequate pipeline of supply in place or market conditions will tighten up again,” said Mercer.
TRREB is calling on all levels of government to reassess and clarify policies related to mortgage lending and housing development.
“Many GTA households intend on purchasing a home in the future, but there is currently uncertainty about where the market is headed,” said TRREB CEO John DiMichele. “Policymakers could help allay some of this uncertainty.”
As higher borrowing costs impact housing markets, TRREB suggests the OSFI mortgage stress test should be reviewed.
The federal government should instill confidence in homeowners that they will be able to stay in their homes despite rising mortgage costs, said TRREB president Kevin Crigger.
“Longer mortgage amortization periods of up to 40 years on renewals and switches should be explored,” Crigger said.insauga's Editorial Standards and Policies
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