What’s Happening in Mississauga Real Estate Market in 2018
After the introduction of new rules, tightening of lending policies and a few interest rate hikes, the prices which were at peak during the first quarter of 2017 went into a correction mode. Average price of Mississauga Real Estate market is down by almost 8% from May 2017 to May 2018.
When we talk about average numbers, the numbers do not tell you the real story of the housing market because within the housing market, we have many different segments (detached, semi-detached, freehold townhouses, condo townhouses, condo apartments etc.) Again within the same type of property there are many different price segments like Mississauga condos less than $350K or condos between $350K to $650K or Mississauga properties that cost more than $650K etc.
In general, the detached home prices are down and the condo apartment prices are up from June 2017 prices.
Impact of Major Changes to Mortgage Rules & Interest Rate Hikes
Homes that were priced at $1 million+ came down by much more than lower priced properties. Condos priced around $350K to S450K did not see any decline, in fact their prices went up by more than 5% within 1 year.
Due to the changes in mortgage qualification rules, people who would normally get qualified for semis are now getting qualified for townhouses. The townhouse buyers are being forced towards condo apartments. And hopeful buyers for a 2 BR condo apartment are getting pushed towards 1 BR condo apartments.
So basically the lower priced properties went up in prices and the prices for higher-end properties fell in 2017. In the last one or two months, prices are slowly starting to move up from their 2017 and early 2018 lows, in the mid to higher segments of home types.
What does the future look like for Mississauga Real Estate?
The housing market is controlled by external factors such as government policies, interest rates, GTA’s tight housing supply etc. Current issues like NAFTA talks, US trade policies, falling Canadian dollar etc. can go against the Canadian housing market and price appreciation. So it is hard to predict what will happen to Mississauga real estate prices by the end of 2018. Having said that, we neither see a market crash nor a double digit growth, but a stable housing market in Mississauga in 2018.
Many Opportunities are available in Mississauga Real Estate Market
There are fantastic opportunities for buying townhouses in Mississauga, which have come down by $50,000 to $70,000 from their peak in 2017, and now they have started moving up again. There is a lot of activity going on in Mississauga Square One Condo Market, Brampton and Milton real estate in the price range of $400,000 – $600,000. Prices are quickly recovering and increasing in these areas, after the fall in 2017.
Other Mississauga Real Estate Market Trends & Opportunities
First Time Buyers
More first time buyers are open to buying homes or condos in 2018 as currently there are no price wars similar to those seen in 2016 and early 2017. Prices are slowly moving up again and buyers don’t want to miss an opportunity to buy low now.
Downsizers in Mississauga
We also have people who are downsizing to condos or smaller homes after selling their larger homes. One of our clients is downsizing from a huge home near Streetsville into a condo. It is important to note that people who put in an offer to buy a larger home are doing so after selling their existing homes.
Upsizers – Moving Up in Real Estate
People are also moving into a bigger home (which have take a beating in prices) by selling their condo apartment or townhouse (prices of small apartments have appreciated in the past 1 year). We have experienced this in the recent months and some of our listings represent this market trend.
Investors in Mississauga
We feel that it is a great time to buy for people looking to invest and who can get qualified by their lenders. For the rest of the investors, including seasoned investors, we feel sorry that banks are not allowing us to buy anymore. Due to tightening of lending rules, most of our investors are now having a tough time in buying another property, even though properties are available at great prices. The rental rates are up by double digits since last year. At the same time property prices are down. This relates into a better cash flow for investors looking to buy in this market. As a team who specializes in not only selling investment real estate, but also helping you manage real estate hassle free, we can help you confidently invest in Mississauga and area.
One of our other listing features an investor client who is selling their condo townhouse at a great price in the popular Churchill Meadows area. It is pre-tenanted property which is a great buy for investors looking to invest with a good rental income from Day 1.
We have also just listed a home which was bought by one of our investor clients for a quick flip in 2016. Now even in 2018, the price has not moved up thanks to last year’s correction. We have listed this brand new detached home at cost price in Burlington. This is a great opportunity to buy a builder new home with quick closing at the original cost price.
There is also an influx of new immigrants and people coming to Canada on a work permit. There are many IT professionals who are moving into Mississauga with good Canadian jobs even before landing, or many get employed in the IT sector within a few weeks of landing in Canada. And then there are many non-resident Canadians moving back from the Middle Estate (Saudi Arabia, UAE etc.) as economies in these countries are not doing as well as in Canada. Our team helps new immigrants and those on a work permit to buy Mississauga real estate.
Renters in Mississauga
It is tough for new renters as we are facing an acute shortage of rental listings. Our advice to renters is to keep all their documents ready (income proof, credit report, rental application etc.) before starting to look for rental properties. Mississauga’s rental rates are up by almost 9% from 2017 to 2018.
The existing tenants are enjoying nominal rent increase of less than 2%, thanks to Ontario’s new rental rules 2017.
There is also an influx of international students arriving in the GTA. They also are facing major roadblocks in finding affordable rentals. This is a big problem that authorities must address before opening doors for so many students who cannot find a reasonable accommodation in the GTA.
Mississauga New Development- Lakeview Village
In March 2018, Ontario Power Generation sold their Lakeview property for $275 million to Lakeview Community Partners Limited (LCPL). The terms of the sale require 27 hectares of waterfront land be remediated and transferred to the City of Mississauga thereby creating a green oasis in the heart of the city. LCPL, the province and the City of Mississauga plans to transform the former Lakeview Generating Station into a vibrant Lakeview Village that will include recreational, residential and retail properties.
The 71.6-hectare Lakeview Village will include 5,000 to 7,000 new homes including townhomes, mid-rise and high-rise condominium buildings, in addition to a 26-hectare conservation area. There will be more than 600,000 sq ft of employment and institutional use and another 200,000 sqe ft of cultural space. Like Downtown Mississauga’s Celebration Square, Lakeview Village will include Serson Square, a year-round central gathering space.
Construction of Lakeview Village is expected to begin in 2020.
Builder New Condos in Mississauga
The builder new condo market is slow these days as builder properties also require approvals even if the property will be ready only after a few years. The effects of the regulations which started last year are now showing up in the builder new condo segment as well. Having said that, there are some golden opportunities in the high-rise condo market segment.
The average price of a builder new condo in Mississauga is around 40% lower than Downtown Toronto prices. We don’t see why Mississauga prices won’t go up with time. The latest new builder condo projects like Erin Square, Edge Tower 2 are offering some fantastic prices. If you are looking a these two projects, please contact us. There are many reasons why these two are currently the top projects to invest in. Avia Condos, the latest tower at Parkside was to be launched this summer, but there seems to be a delay in the launch of this tower. This will be another project to keep your eyes on.
To Sum it Up for Buyers & Sellers
We feel that this is the best time to buy if you are pre-approved for a mortgage loan. Properties can be found at great prices. Things are slowing down, there is a lot of negativity and apprehension in the market thanks to talks around NAFTA, US/ Canada trade policies, interest rate hikes etc. At the same time the Canadian economy is still doing very well. While we do not have a crystal ball to predict the future of real estate in Mississauga or the GTA on the whole, we don’t see why someone should not invest in real estate, as this is an investment for the the long run.
Correctly priced Mississauga properties that are presented nicely and are marketed aggressively are selling quickly. We don’t have any issues when it comes to offering our 30 Days SOLD Guarantee for all homes and condos we evaluate. Learn more about our value added services and benefits for sellers.