House Prices Continue to Skyrocket in Mississauga
It’s no secret that house prices in Mississauga (and Toronto and its satellite cities) have risen exponentially and it doesn’t look the trend is slowing down. While that’s good news if you’re selling, it’s probably bad news if you’re buying (and both good and bad news if you’re selling and buying).
The Toronto Real Estate Board (TREB) recently released stats for January 2017 that indicate that house prices in Mississauga and the greater 905 are continuing to rise.
TREB president Larry Cerqua announced that GTA realtors reported 5,188 residential transactions through TREB’s MLS System in January 2017—that's up by 11.8 per cent compared to 4,640 sales reported in January 2016. In terms of what's selling more, TREB notes that annual rates of sales growth were higher for condominium apartments than for low-rise home types.
Basically, January 2017 picked up where 2016 left off. Sales were up on a year-over-year basis while the number of new listings was down by double-digit annual rates for most major home types (meaning inventory is low).
The persistent lack of inventory that is causing home prices in Toronto and the 905 to climb higher is still putting strain on buyers.
“Home ownership continues to be a great investment and remains very important to the majority of GTA households. As we move through 2017, we expect the demand for ownership housing to remain strong, including demand from first-time buyers who, according to a recent Ipsos survey, could account for more than half of transactions this year. However, many of these would-be buyers will have problems finding a home that meets their needs in a market with very little inventory,” said Cerqua.
According to TREB, the MLS Home Price Index Composite Benchmark was up 21.8 per cent compared to last year. The average selling price for homes is also up, with the average home going for $770,745 (up 22.3 per cent), with double-digit gains in the average prices for all major home types .
Right now, the average detached home in the 905 (which obviously includes Mississauga) is selling for an astonishing $999,102. Semi-detached homes are going for $651,545 and towns are typically running buyers $604,263. Condos are selling for about $379,169.
While those numbers aren’t terribly encouraging if you’re trying to enter the market, you’re a little better off than your 416 counterparts.
In Toronto, detached homes are going for a whopping $1,336,640.
"The number of active listings on TREB's MLS(r) System at the end of January was essentially half of what was reported as available at the same time last year. That statistic, on its own, tells us that there is a serious supply problem in the GTA - a problem that will continue to play itself out in 2017. The result will be very strong price growth for all home types again this year," said Jason Mercer, TREB's Director of Market Analysis.
With inventory and interest rates staying low, we can probably expect home prices to continue to climb or, at best, remain level for the foreseeable future.