Is Mississauga’s condo market hot or not?

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Is Mississauga’s condo market hot or not?

Mississauga Condo market update

Rogers TV First Local recently covered a special edition on Mississauga’s condo market. Their reporter met me and asked me about my views on the market. Below is what I had to say about the resale and new builder’s condos in Mississauga downtown. Not everything was telecast due to time constrain:

Resale condo market is healthy

Mississauga condo market in Downtown Mississauga is doing well looking at the Toronto Real Estate Board (TREB) data below. In the past five years resale numbers in W15 show that almost 1200, 1300, 1400 and 1422 condo apartments were sold in the year 2005, 2006, 2007 and 2008 respectively.

Condo Apartments Sale in W15 (Mississauga Square One Neighbourhood)

Month  Active Listings   Sales 

Sold to Active Ratio

Median Price $

Feb 2005

405 

 81 

 20% 

175,000 

Feb 2006

388

 94

 24.2%

171,250 

Feb 2007

 441 

 104

23.6% 

184,450 

Feb 2008

302

110

36.4%

201,000

 Feb 2009

378 

 77

20.4% 

203,000 

The active to sold listings ratio may have been down compared to last year, but the prices have not dropped. This shows strength in the Mississauga real estate market. Mississauga condo prices have appreciated almost 16% in past four years. Mississauga is the no.1 destination of choice of new immigrants and professionals. Mississauga is a knowledge based economy and many educated professionals make Mississauga their home. Many first time buyers who cannot afford Toronto real estate prices and or buyers who do not want to pay more in Toronto’s new land transfer tax also flock Mississauga.

Mississauga has some great plans for its Downtown. Revitalization of public spaces in and around downtown Mississauga, with particular focus on the new parks and public spaces in the City Centre area is on its way. The City is spending millions of dollars to revitalize the City Centre area. The place is poised to become vibrant in the coming years with many activities that will take place in the vicinity- road shows, multicultural events, farmer markets, piazzas, coffee shops, GO transit terminal expansion, bus rapid transit, cinema halls, parks, walking trails etc.

This will further add value to the condos in the Square One Area.

New builder condo market Is Down

The current economic downturn has certainly taken a toll on new builder condos sales market in Downtown Mississauga. As per the RealNet’s new home market data, less than five new builder condos were sold in Jan 09 out of approx. 770 in W15 district. One of the reasons can be attributed to the future pricing model of these units. Builder’s price of pre-construction condo is always more than the current market price of similar condo in the resale market. With the plunging housing numbers and a gloomy economic outlook, buyers are finding better value in resale condos.

Some builders are becoming smarter and offering more incentives to the buyers. In my opinion, unless the builders don’t entice buyers with better pricing and incentives they may find it hard to sell many condos in this market.

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By | 2017-01-23T12:11:16+00:00 March 6th, 2009|Categories: Condos, Realty Talk|Tags: |Comments Off on Is Mississauga’s condo market hot or not?

About the Author:

Amit Kalia
Amit is a full time local REALTOR® since 2003. Currently he is with RE/MAX Real Estate Brokerage Inc. in Mississauga. RE/MAX is Canada's #1 real estate company. He is supported by a very strong Sales and Marketing team. Together with his team, Amit has been serving property sellers, first time buyers, real estate investors, landlords, renters, new immigrants to Canada and non-residents. Amit and his team specialize in Square One condos and also work in many other Mississauga neighbourhoods. Team Amit Kalia offers a 30 Days Sold Guarantee to Sellers. Amit's team also provides exclusive A La Carte property management services for their investor clients and landlords.