Mississauga housing prices drop 6.2 per cent in second quarter of the year
Published July 14, 2022 at 11:45 am
Housing prices dropped from early 2022 in Mississauga but it’s still going to cost about $1.5 million to buy a detached home in the city.
The median price for a single-family detached home in Mississauga was $1,522,200 in the second quarter of 2022, down 6.2 per cent from the first quarter high of $1,622,300, according to the latest Royal LePage House Price Survey. But it’s still above the median price of $1,450,000 this time last year.
There is a similar trend with condos.
A standard condo dropped by 7.3 per cent from $672,500 to $623,200 in the second quarter of 2022, down 7.3 per cent. But again, it’s still higher than last year’s median price of $560,000 for a condo in Mississauga.
The aggregate price (calculated using a weighted average of the median values of all housing types) of a home in Mississauga was down 6.6 per cent to $1,213,500 in the second quarter compared to $1,299,500 in the first part of 2022. Still up from $1,106,500 this time last year.
Royal LePage suggests the changing economic climate is behind the lowering prices.
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“Some of the heat that was driving the market cooled during the quarter as rising interest rates coupled with economic uncertainty undermined consumer confidence and pushed buyers to the sidelines,” said Phil Soper, president and CEO of Royal LePage.
Royal LePage is forecasting that the aggregate price of a home in Canada will increase five per cent in the fourth quarter of 2022, compared to the same quarter last year. For the GTA, housing prices are expected to increase year-over-year by three per cent in the final quarter of the year.
This is bad news for people who bought homes at 2022’s February and March peak but Soper said home prices will continue to climb, even if it is at a slower rate.
“We have significantly reduced our outlook for 2022, however home prices are still forecast to end the year higher than 2021 and well above pre-pandemic norms,” Soper said.
Soper suggests the decline in prices in southern Ontario will be short-lived.
“I expect this highly unusual downward movement in home values will be short-lived as the country’s chronic housing shortage has not been resolved,” he said. “Barring a sharp increase in the inventory of properties for sale in this country, which seems unlikely given our exceptionally low level of unemployment, growing population and miniscule rate of mortgage default, we expect that the second quarter produced most of the price declines we will see this cycle.”
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