House Prices Continue to Climb Wildly in Mississauga
The scaldingly hot (many say too hot) housing market in Mississauga and beyond is continuing to heat up, as prices rose once more in March.
The Toronto Real Estate Board (TREB) reported that prices are still being driven by extreme competition between homeowners who are grappling with a lopsided supply and demand situation (there's a great deal of demand and little in the way of supply).
That said, GTA realtors reported 12,077 residential sales through TREB's MLS system in March 2017, which signifies a year over year increase of 17.7 per cent
For the TREB market area as a whole, annual sales growth was strongest for condominium apartments and detached houses.
TREB also notes that the number of new listings also increased on a year-over-year basis, at 17,051 - a 15.2 per cent increase compared to March 2016. The strongest growth in new listings was experienced in the detached market segment. But while new listings were up (quite a bit, to be fair) compared to last year, the rate of new listings growth was still lower than the rate of sales growth.
But while the market is still scorching and people are still struggling to purchase homes and all levels of government are scrambling to identify solutions.
That said, TREB president Larry Cerqua is glad governments aren't taking rash approaches to the issue.
"It has been encouraging to see that policymakers have not implemented any knee-jerk policies regarding the GTA housing market. Different levels of government are holding consultations with market stakeholders and TREB has participated and will continue to participate in these discussions," Cerqua said in a statement. "Policy makers must remember that it is the interplay between the demand for and supply of listings that influences price growth."
As for prices, that news is either very encouraging if you're selling (and planning to downsize or move out of town) or frustrating and discouraging if you're buying.
TREB reports that detached houses in the 905 are going for an astounding $1,124,088. Other housing categories are also growing in price, with semi-detached homes costing buyers about $742,501, towns hitting the market at $690,202 and condos running buyers a shocking $440,950.
Those numbers are still a little less stressful than the ones observed in Toronto, where detached homes are costing buyers $1,561,78 and semis $1,089,60. Townhouses in the 416 are going for about $761,128 and condos are costing $550,229.
As for Peel (Brampton, Mississauga and Caledon) in particular, TREB says that detached home prices in the region have grown 31.14 per cent year over year. Semi-detached homes have grown 30.64 per cent, towns 29.68 per cent and condo-apartments 24.05 per cent.
With low inventory plaguing the market, competition is intense and driving prices higher.
"Annual rates of price growth continued to accelerate in March as growth in sales outstripped growth in listings. A substantial period of months in which listings growth is greater than sales growth will be required to bring the GTA housing market back into balance. As policy makers seek to achieve this balance, it is important that an evidence-based approach is followed," said Jason Mercer, TREB's Director of Market Analysis.
So there you have - detached home prices are officially $1.1 million.
It'll be interesting to see how the market shifts going forward.