Mississauga Real Estate Affordability Report by REMAX
Highlights from REMAX Canada-wide Affordability Report
A recent RE/MAX Housing Affordability Report examines a variety of housing affordability factors and how they impact Canadians’ ability to buy, particularly first-time buyers. A Leger survey conducted for RE/MAX presents some surprising findings:
- Two in 10 Canadians plan to purchase a home, with 4% planning to buy in the next year
- Excluding mortgage, three in 10 Canadians have consumer debt, averaging about $24,000
- One-quarter (24%) of Canadians without a mortgage have enough money for a down payment
- Nearly half of Canadians (42%) believe that housing affordability across the country would improve with government intervention, such as a national housing strategy
- Only 38% of Canadians claim that the high price of real estate is one of the biggest obstacles preventing them from buying a home.
- Meanwhile, the majority of RE/MAX brokers (56%) claim that low or shrinking inventory is a more common factor.
Of the seven in 10 (68%) of Canadians who do not currently own a home and do not feel they will be able to afford one in their desired neighbourhood, barriers include:
- High price of real estate (38%)
- Salary is not enough to save for down payment (26%)
- Fear of rising interest rates (17%)
- Level of household debt (15%)
Emerging trends like co-ownership with friends and family have become common in markets like Vancouver and Toronto in order to beat the rising prices. In regions such as Brampton, Edmonton and Ottawa, sharing a single-family home between two families, or dividing the floors between them, or children seeking financial support from parents for down payments are all becoming common practices.
Of the regions surveyed, Winnipeg, Regina and Halifax are currently the most affordable markets. Vancouver, Toronto and Mississauga are currently the least affordable regions in Canada, with average sales prices of $1,195,923, $883,520 and $760,005 respectively.
Mississauga is one of Canada’s least-affordable housing markets.
Mississauga Real Estate Affordability
Mississauga real estate prices have witnessed steady growth in recent years. No wonder it ranks #14 of 16 Canadian cities when it comes to housing affordability, according to the 2020 RE/MAX Report. Some of the affordable neighbourhoods to buy a home in Mississauga include: Malton, Meadowvale and Lisgar.
Factors contributing to Mississauga real estate prices
Mississauga real estate prices saw a 7% increase from 2018 to 2019, and another 5% price increase is expected in 2020 in Mississauga. In fact, Mississauga is one of Canada’s least-affordable housing markets.
RE/MAX’s affordability ranking is determined by assessing the percentage of a buyer’s monthly income needed to carry a mortgage, assuming a down payment of 25%, and is based on the forecasted average sale price and average household income.
With an average 2019 sale price of $760,005 Mississauga real estate is currently considered to be undervalued. This fact coupled with easy access to public transit systems, major highways and proximity to the Toronto Pearson Airport attract larger corporations. Home buyers quickly follow, as many people generally want to live close to their place of work.
First-time Home Buyers
This segment is almost always challenged by housing affordability. Their first choice is condominium apartments, followed by townhomes. In an effort to enhance affordability, it is not uncommon to see more than one family living in a detached home that was originally designed for a single family. Buyers may also commonly live in a portion of the home and rent out the remainder (such as a basement suite) to help cover the recurring monthly costs, like mortgage.
At the opposite end of the housing affordability spectrum, Mississauga’s three least affordable neighbourhoods are Mineola, Port Credit and Lorne Park.
Source Credit: remax.ca