GTA Real Estate Market July 2021 Update
GTA Real Estate Market July 2021 Summary
As per TRREB’s July Market Watch Report, there were 9,390 home sales, which is down by 14.9% compared to July 2020. On a seasonally adjusted basis, July sales were down 2% compared to June.
This can be attributed to tighter market conditions as well as a better COVID situation relative to July 2020.
The hot real estate market is actually taking a breather as quantitative easing had resulted in sky-high home prices prior to July. This led to buyer fatigue, as multiple bidding was the name of the game. With the reopening of the economy and lifting of lockdown restrictions, people have actually taken a break from home hunting and are focussing on enjoying the short summer.
However, with international borders opening up gradually, we are expecting an influx of newcomers, work permit holders and permanent residents into Canada. Demand for home ownership as well as the rental market can go up exponentially.
So how can this affect the prices?
While prices can continue to grow, but if a lot of listings keep coming into the market then prices will stabilize somewhat. But if there is a shortage of listings, then it can again lead to price wars and escalation of prices.
Choices for First Time Home Buyers & Newcomers
First time home buyers and newcomers with a household income of $150,000 can be restricted to buying condo apartments. The reason is simple, the thumb rule for qualification is 4.5 times the household income. So a couple with a household income of $150,000 normally qualifies for $675,000 only. With other debts, one can barely qualify for a 2 bedroom apartment in Mississauga & other GTA areas, based on the prevailing market prices seen in the table below.
We expect a lot of home selling activity from move up buyers. People may be moving from a 1 Bedroom to a 2 Bedroom condo, a 2 Bedroom to a 3 Bedroom condo, a townhouse or semi-detached home to a detached home in Mississauga & Area.
Similarly, we expect a lot of downsizing activity also as the Canadain population is aging. People who are downsizing can reap the benefits of selling their homes and choosing to rent and enjoy their tax free equity for the rest of their lifetime.
What are the Current Average Home Prices?
|July 2021 Average Home Prices as per TRREB|
|Detached||Semi-Detached||Condo Townhouse||Condo Apartment|
Source: July 2021 TRREB GTA Market Watch
How is the current Builder New Condo Market?
There are multiple builder new condo projects in Downtown Mississauga as well as some builder new home projects outside of Mississauga. Many of them make prudent sense to invest in if you are thinking of becoming a landlord.
Whether you are looking to invest or buy for yourself or your children, we do the math for you to help you choose from the options available at the time you are looking.
To give you an idea, as of August 2021, a builder new condo which will be available for occupancy in 2026 costs around $1300 – $1400 per sq ft, which includes parking. And if you were to buy a condo in the Resale Market, it would cost around $850 – $1,000 per sq ft, which includes parking and locker.
Latest Builder New Condo Project in Mississauga
EX3 – the 3rd Tower at The Exchange District VIP Sales launched!
No other project is currently being offered in the Mississauga condo market that can beat the location of Exchange District condos. It is located right in front of the Square One Mall directly opposite Holt Renfrew & the Square One South Promenade.
Features: Steps to Downtown Amenities, Landmarks, Public Transit, Quick Access to Highways, 10 Min drive to Pearson, 20 Min Drive to Toronto, Hurontario LRT launching 2022.
Worksheets are now being accepted by the Builder. Contact Team Kalia at 905-339-5111 to Discuss Price Lists & Floor Plans ASAP!
If you are looking to invest in Builder New Projects, and are looking at more options, we have some other current projects on hand: Voya, Alba, Gemma & Vincent.