Housing prices drop more than 6% in Mississauga and Brampton: report
Published October 13, 2022 at 10:13 am
As the real estate market continues to soften, home buyers in Mississauga and Brampton may welcome news of a predicted further decline in prices this year.
GTA home prices are expected to drop 3.5 per cent in the last half of the year, from an aggregate price $1,119,800 in the last quarter of 2021 to $1,080,607 in the final months of 2022, Royal LePage House Price Survey released today (Oct. 13).
Aggregate prices are calculated using a weighted average of the median values of all housing types collected.
Royal LePage is forecasting that the aggregate price of a home in Canada will decrease 0.5 per cent in the fourth quarter of 2022, compared to the same quarter last year.
While it will still cost over $1 million to buy an average home in Mississauga and Brampton, the area is seeing a downward trend.
In Mississauga, home prices dropped 6.8 per cent from $1,522,200 in the second quarter of 2022 to $1,418,400 in the third quarter. Home prices dropped 2.5 per cent from the third quarter of 2021 when the median price was $1,455,000.
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In Brampton, the median price of a home dropped 6.6 per cent from $1,265,000 in the second quarter of 2022 to $1,181,900 in the third quarter. This is also a 2.2 per cent decrease from the third quarter of 2021 when the median was $1,208,700.
“September did not bring the typical seasonal lift in the number of homes trading hands in this country, a clear indication that our housing market continues to adjust to higher borrowing costs,” said Phil Soper, president and CEO of Royal LePage.
“Home prices follow sales volume trends, which means we will see further softening in the final months of the year. Our revised outlook has national prices at just below where we ended 2021, erasing the gains made in the first quarter of 2022.”
Canadian home prices are expected to end 2022 slightly lower than 2021. Royal LePage has lowered its 2022 forecast and expects that the national aggregate home price will decrease 0.5% in Q4 compared to the final quarter of 2021. Read more about why here: https://t.co/GJq6ZAydZ8 pic.twitter.com/SKr9Y2pscY
— Royal LePage Canada (@Royal_LePage) October 13, 2022
While home prices are down, rising interest rates make it pricer to buy a home for those who need a mortgage.
“Housing activity slowed over the summer in the GTA, as many buyers and sellers remained on the sidelines,” said Karen Yolevski, chief operating officer, Royal LePage Real Estate Services Ltd.
“However, while home prices continued to decrease in the third quarter, a moderate boost in demand is expected this fall, as potential buyers who have secured a mortgage rate are eager to transact before it expires, and ahead of another potential interest rate hike.”
Overall, Royal LePage adjusted an earlier forecast, and now expects flattening or modest decrease of prices through the remainder of the year.
This follows quarterly declines in a majority of Canadian markets in the third quarter.
Of the report’s 62 regions, only four places in Canada — St. John’s, Charlottetown, Montreal South Shore, and Saskatoon — saw price increases in the third quarter.
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