Mississauga Real Estate Market 2017 Outlook
Mississauga Real Estate Market 2017 – Canadian Housing Market 2017
It comes as no surprise that Mississauga experienced a seller’s market condition throughout 2016. Mississauga home sellers did well in 2016. The average home sale price was $625,538 which is 14% higher than 2015 prices. But the total number of home sales showed a decline of about 3% year-over-year. As per RE/MAX, this trend is likely to continue getting into 2017.
The hard fact is that soaring and affordable home prices are scaring some potential buyers from entering the market. This will likely stabilize price growth rate in 2017. A price growth of 8% is expected for the coming year. Fortunately for Mississauga buyers, they are still shielded from double land transfer taxes. Buyers still find Mississauga home market more accessible compared to Toronto.
Condos have become the only entry point for millennial first-time home buyers in Mississauga. Condo market in Mississauga received a further impetus from local and foreign residential real estate investors. They drove demand and prices of Mississauga condos like never before. The average sale price for a condo in 2016 was $367,779. A condo building boom in 2017 and the coming years will drive further demand in condos. New developments are coming up in Port Credit, Erin Mills and City Centre areas.
Stay tuned for my next blog post focusing on Mississauga Condo Market Outlook for 2017.
Foreign buyers and move-up buyers from within Mississauga and from Richmond Hill, Markham, and Toronto drove demand for detached homes in Mississauga, especially in the upper end of the market. Home sales and price growth is expected to remain steady in 2017 thanks to the recent mortgage rule changes and expected increase in interest rates. The ongoing Lakeview revitalization and development promises to drive demand for housing in the area.
Mississauga Real Estate Market 2017 – National Sentiment
The national housing market will also have some impact on the real estate markets of GTA and Mississauga. For example, the ripple effect of the foreign-home buyer tax in Vancouver will be in the upper end of the GTA (and Montreal). This is because foreign investors who typically bought in Vancouver are likely to look for properties elsewhere. Recent mortgage changes will likely slow down local first time home buyer activity across the country in the short term. But it is not expected to have a long-term impact in most regions.
Home ownership remains a priority for Canadians, with 53% of respondents in a recent RE/MAX survey conducted by Leger expressing intent to purchase a home and 47% expressing intent to do so in the next five to 10 years. Nearly one in three (30%) Canadians plan to use the purchase of a home as an investment strategy to help fund their retirement, and 42%of millennial respondents view it as a retirement funding strategy. A proportion of Canadians would also consider unconventional home financing options to realize their dream of ownership such as: purchasing a home with a family member (33%); renting a room on a vacation rental site like Airbnb (15 per cent); renting out a room in their home (22%); or even purchasing a home with a roommate (9%). [Excerpt from RE/MAX Housing Report]
Canadian Housing Market 2017 – Outlook for GTA
The average GTA home sale price rose by 17% from 2015 prices to $725,857. Move-up buyers drove demand for detached homes valued up to $1.5 million in Toronto and $1 million in other parts of the GTA. This trend is expected to continue into 2017.
Young professionals and young families who make up for most of the first time buyers, are entering the real estate market by buying a condo. Their choice is driven by affordability and easy commute to work. The average sale price for condos in the GTA rose by 2% year-over-year as compared to 2015. In Toronto, 2-bedroom condos close to TTC subway lines, were very popular. Developers are taking cue and starting to build larger units to accommodate first-time home buyers. Empty nesters drove the upper end condo market. Overall, condos will remain popular with GTA buyers in 2017.
The GTA luxury residential real estate market performed well in 2016. Foreign buyers are taking advantage of the low Canadian dollar and investing in detached homes. As baby boomers look to downsize to condos, more upper end detached homes are likely to become available in 2017.