Sales dropping–but prices holding somewhat steady–in Mississauga housing market amid COVID-19 pandemic
Published April 15, 2020 at 8:28 pm
While home prices are expected to decrease as the COVID-19 pandemic (and associated lockdown) stretches on, it looks like homes are still selling for relatively big bucks in Mississauga–even as sales plummet.
Nik Oberoi, a Mississauga-based sales representative with Cloud Realty, says that between April 1 and April 13, just 31 low-rise home sales were reported in the city.
Oberoi says 21 detached homes, nine semi-detached homes and one townhouse changed hands.
Oberoi says the average listing/asking price sat at $1,102,488, while the average sale price came in at $1,074,672–just slightly under asking.
“Surprisingly, out of the nine semi-detached sales, the average price was still higher than the list price,” Oberoi said, adding that the average list price was $778,000 and the average sale price $788,588.
Oberoi says detached homes sold for a little under the average list price, but not by much.
“Prices still haven’t seen a hit, in terms of numbers,” he says.
“I’m expecting a further drop in prices and sales over the next three-to-six months. I expect the market to get back to normal by early 2021. Once again, it all depends on how COVID-19 is handled and the consumer mindset once we all get out of it.”
While prices haven’t dropped much, sales most certainly have.
Oberoi says that 233 low-rise homes changed hands over the course of the same period in 2019–which means that 201 additional sales occurred between April 1 and 13 last year. Last year, the average asking price was $917,000 and the average sale price was $907,000–meaning prices are still up year-over-year.
As far as condos go, Oberoi says 25 units changed hands between April 1 and April 13 this year. The average asking price was $543,000 and the average sale price was $537,000. In the Square One area, eight units changed hands and they sold, on average, for close to $30,000 under asking.
According to Oberoi, the average asking price in the City Centre area was $561,000, while the average sale price was $534,000.
Oberoi says the Mississauga condo market saw 208 sales during the same time period last year, with condos listed at $511,000 selling for about $509,000.
During the same time period, 68 sales were recorded in the Square One area, with condo units priced at about $473,000 selling for about $474,000.
While now is definitely a difficult time for sellers–or those who need to sell in order to buy a place–it’s actually not a bad time for first-time buyers, as there’s little competition for active listings.
That said, physical distancing measures could make purchasing a house much more difficult. Open houses are still prohibited and realtors–who can continue to work, as they’ve been classified as essential workers–are being advised to avoid in-person meetings.
“It’s definitely a buyer’s market right now. There is no competition for listings for the most part and for those who have a high-risk tolerance and need to get into the market, buying any time within the next three-to-six months will be a good time to buy low with no competition,” Oberoi says.
That said, Oberoi has told insauga.com that prospective buyers who are uncertain about their job or finances should refrain from making a home purchase–at least until the crisis settles down.
He also said those looking to make a short-term investment should reconsider buying a home, as it’s not clear when the market will fully rebound from the crisis.
But if you’re not worried about selling, are happy to communicate electronically with your realtor and plan to live in your new home indefinitely, now might be a good time to buy–especially since experts are optimistic that competition for homes will reignite in 2021.
“[For] those looking to buy, between now and the next six months is when you buy,” Oberoi says.insauga's Editorial Standards and Policies