Mississauga homes selling for close to 6% under-asking: Report
Published December 8, 2022 at 4:18 pm
Homes in Mississauga aren’t exactly affordable, but they aren’t selling for thousands (or tens of thousands) of dollars over asking in the current economic climate.
According to a recent report by real estate website and brokerage Zoocasa, houses in Mississauga are selling for 5.78 per cent under the average list price of a little over $1 million. The average list price in the city is $1,085,072, but homes are selling for an average price of $1,022,312.
The report says the change in market dynamics is linked to steadily rising interest rates, which have deterred some prospective buyers from jumping into the market and incurring higher borrowing costs.
“Interest rate increases have caused downward pressure on home prices across Canada. Since the first announcement in March following the housing price peak, prospective buyers have been understandably hesitant to enter the market and less willing to part with their money,” writes Daniel Crook, Zoocasa’s marketing and social media specialist, in the report.
While the real estate market was hot at the beginning of 2022, multiple interest rate hikes have cooled the market.
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The Bank of Canada announced the seventh (and final) hike of the year this month, effectively increasing the cost of borrowing by 4.25 basis points.
According to Zoocasa, houses in other municipalities are also selling for under-asking. In Burlington, homes are selling for 5.68 per cent less than the listing price, and in nearby Milton, they’re going for about 4.52 per cent under-asking. In Oakville, houses are selling for $1,397,718 on average–6.20 per cent below the average asking price of $1,490,113.
In other cities, homes are still selling for close to or over asking.
According to the report, some markets are still hot, with homes going for 7.44 per cent over asking in Markham and 4.98 per cent in Ajax.
While house prices in Mississauga are down from earlier in the year, they are up a little bit month-over-month. Zoocasa says that in November, the average house price climbed back over the $1 million mark to hit $1,022,312–a 3.4 per cent increase over October.
In October 2022, the average home price in Mississauga dropped to $987,356–a decline of over 19 per cent from February 2022, when the average home price sat at $1,225,339.
But while prices are back up, sales remained relatively flat, with 409 homes exchanging hands in November. Zoocasa says that Mississauga boasted more new listings than its Peel counterparts of Brampton and Caledon, however, with 737 new homes hitting the market.
According to Zoocasa, detached homes continue to be the most in-demand property type in the city, with 166 sales in November.
Data recently released by the Toronto Regional Real Estate Board indicates the average price of a detached house in Mississauga hit $1,427,501 in November. Semi-detached homes hit $984,736, while townhouses tended to cost buyers $1,059,545. Condo townhouse prices sat at $782,442, and condo apartments cost $600,605 last month.
“The increase in average price and new listings may signal that sellers are catching onto the demand for detached homes in the area,” Zoocasa says about Mississauga.
“The average property days on market is still currently at 37 days, just slightly above the Peel Region average of 35 days.”
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