Mississauga Real Estate Market Update – 2015
Key highlight of Mississauga Real Estate Update 2015
Last year, I had written about Mississauga the next Toronto in terms of home prices, and the current data is proving this to be true. Prices are moving up faster than one can even imagine. Last week, my buyer was outbid even after he put more than the asking price for a Churchill Meadows home. This home sold above $1 Million mark, some $60K over its asking price. As a thumb rule, someone who is buying a one million dollar home should have an annual household income of $200K. How many families can make that kind of combined earnings?
A recent report from BMO also suggests that condo living is going to be the new norm in Toronto, and by extension in some parts of the GTA, notably in Mississauga. What this means is that condo living will become the first option for first time buyers and investors in Mississauga.
Trends in Mississauga Real Estate
Last year, I had done an update on Square One Condos, and in that report I also mentioned about freehold homes having a great potential for growth in Mississauga and my forecast came true this year too. We saw a great increase in Mississauga.
Since last year, detached homes have gone up by 10%, whereas the apartments did not grow much, only by 6% in Mississauga. What this means is that if a person was to move from a condo apartment to a detached home, the gap between the median prices of a condo apartment and a detached home has increased significantly. As seen in the chart, the median difference is $454,000 between a condo apartment and a detached home. Last year was a great time for many of my clients who made the decision to move from condo apartments to detached homes in neighbourhoods like Churchill Meadows and East Credit, which are the fastest growing neighbourhoods, and still closer to downtown Mississauga.
Mississauga Real Estate Market – Median Prices
|Type||Feb 2014||Feb 2015||%age increase|
My Opinion on Future of Mississauga Real Estate Market
- I expect many first time buyers priced out of freehold home market in Mississauga.
- Even investors will find it harder to make sense of real estate investing in freehold properties as the numbers will make little sense
- First time buyers and investors will flock towards condos in Mississauga, or simply move out of Mississauga to smaller towns
- Smaller towns like Acton, Caledon, Cambridge, Georgetown, Hamilton, Kitchener, London, Orangeville, Waterloo etc. will see a boost in prices as a result of this movement
- As the price gap between condos and homes will continue to increase in 2015 and beyond, the prices of Mississauga condos will also increase to meet the gap