Mississauga Real Estate Market 2015 – Key Learnings
Mississauga Real Estate Market 2015 – A boon for low-rise housing
My recent experiences with separate clients confirms for me some trends that we are seeing with the Mississauga real estate market conditions for detached homes, semis and even townhouses. Good homes that have been decently upgraded or updated and show well, are selling like hot potatoes, for prices well above the asking price. In fact, sellers ask for all bids to be presented a few days after the property comes on MLS. And this move is strategic, to allow for multiple offers to come their way. It is but an obvious behaviour on the part of anxious potential buyers to put in a bid that is higher than the asking price. In this process however, buyers tend to sometimes overextend themselves. For the seller, it means that they will be able to get the maximum bang for their property. Mississauga real estate market 2015 is currently in the favour of sellers. Well, the prime objective of real estate is to make one richer, and the current Mississauga market conditions for low rise housing could not be truer.
I remember the days, not so long ago, when a property would typically sell at 98% of the asking price. Selling a property at 100% of asking price was simply fantastic. But now, I am surprised to see Mississauga homes sell like 5% or more above the asking price. For buyers, Mississauga market conditions for homes is just too tight. As they say: no guts, no glory, for buyers when it comes to bidding for a home in Mississauga these days. It is not to say that sellers are overpricing their properties, it is just that some buyers are willing to pay more, to get themselves a home in Mississauga.
So what should the strategy be for conservative buyers in Mississauga Real Estate Market 2015?
Homes That Need Work Can Be Ideal For Buyers
This is the basket that I would put the eggs in, as this strategy can beat the current conditions, and help you get your feet well grounded into the Mississauga real estate market 2015. Real estate consumers need to start looking for homes which need work. There are some great deals to be found in the marketplace, for homes which need improvement.
Mississauga real estate market 2015 for High-Rise Market
The high-rise market (condo apartments) market is a different ball game. There is a high inventory, lower prices and the ball is in the buyer’s court for some condo buildings in Mississauga. Some of these buildings are not very popular with consumers and have not earned a good reputation in terms of price growth, quality, crime rates etc. Having said that, there is big demand for well priced older condos in Mississauga that are upgraded, and also for newer condos in premium buildings.
Investors & First Time Buyers in Mississauga real estate market 2015
In Mississauga, Square One Condo apartments have always been the first choice of real estate investors for cash flow, smaller down payment and quick renting. But these days investors who own multiple properties are having a hard time to get financing. Tight lending conditions have slowed down demand for high rise condos. Over the next few years, the high rise condo market will see a huge influx of first time buyers. Reason being that first time buyers are almost priced out of low rise housing market in Mississauga and Toronto, and condo apartments will be their best available choice.
Cashing out on low-rise and moving into condo apartments
In 2015, I am also working with sellers who are downsizing. Most of these sellers are in their mid-fifties age group. They are well settled and their kids have moved out. These people want to enjoy a condo lifestyle and travel after locking up their suites, without having to worry about maintaining their garden, shovelling snow etc. Some of these people also feel that our GTA housing market is poised for a correction and by cashing out at the peak of real estate market they will keep cash in their bank after selling their low rise homes. From the proceeds of sale of their freehold homes, these people plan on buying condo apartments in cash or with a small amount of mortgage loan.