How much does it cost to buy in Mississauga vs. Brampton
The Toronto Real Estate Board – TREB’s October 2019 Market Watch Report shows the average sales price for all types of dwellings in both markets is either breaking or approaching record highs, with Mississauga far out pacing its northern neighbour, Brampton in the Peel region.
With Mississauga fast becoming out of reach, most aspiring home buyers have been looking to live elsewhere with Brampton, Milton, Burlington and even Ancaster as their next best options. We will take a closer look at Mississauga Brampton home buying comparison in this post.
Mississauga vs Brampton Home Prices
Mississauga showed an average price of $816,383 across 833 sales in October 2019. In Brampton, TREB reported an average October sales price for all types of dwellings of $739,889. Caledon, an immediate neighbour of Brampton, better known for larger homes on huge plots of land, showed an average home price of $977,854.
|AVG. PRICES (OCT 2019)
We have been hearing this a lot that Mississauga’s residential real estate market is well out of the reach of median-income households. Forget about traditional single family detached homes. Even the prices of condos for sale in Mississauga well out strip earnings and affordability at $470,000 (average price to buy a condo in the Peel region).
Mississauga vs Brampton Home Buyer’s Median Income
Home Buyers in Mississauga with a median-income of $83,018 would typically qualify for mortgage amount of about $372,000. This would require them to come up with approx. $98,000 of their own. Not many can boast of that kind of saving at the time they are looking to buy. This may be true especially for First Time Home Buyers, Millennials and Newcomers. However, a segment that may well be able to afford buying a condo is people looking to downsize into a condo after selling their home.
The affordability gap obviously only widens with each home type in either market. It costs between $600,000 to $650,000 to buy a townhouse in Mississauga, $750K+ to buy a semi-detached home in Mississauga, and $1M+ to buy a detached home in Mississauga.
As you can see from the above chart, while affordability is better in Brampton, the cost of home ownership is still beyond the reach or challenging of most potential home buyers in either market. However, with a slightly higher median household income of $87,290 and lower home buying prices makes Brampton a little more accessible for hopeful home buyers.
Mississauga Brampton Rental Market
Renting as opposed to buying really doesn’t make sense as the median monthly rent in Mississauga was $2,336 in the 3rd quarter of 2019. That represented an increase of 7.5% in just a year compared to $2,173 in the 4th quarter of 2018.
The median rent in Brampton was $2,250 in the third quarter of 2019, increasing 15.8% over the previous year. While registering a higher percentage increase, the median rent in Brampton remained sightly cheaper by $86 per month as compared to Mississauga.
Find out what your options are and how much it costs to rent in Mississauga currently.
Here’s a look at GTA Condo Market with Mississauga and Brampton falling under Peel region category:
Team Kalia’s Take on Mississauga & Brampton Real Estate Comparison and Affordability
While great deals can still be found when you are looking at Mississauga Brampton home buying, it is getting increasingly difficult to secure the home of your dreams simply due to the demand and supply situation and tight lending conditions.
First time buyers should consider reducing commute time and live closer to their workplaces. Instead of living in a bigger home with large backyard, they should focus on spending quality time with their family instead of long hours in commuting. By doing this, buyers can end up compromising on the size of home or might not be able to afford their dream home closer to Toronto Mississauga. The most important thing is get your foot into the housing market. Your smaller or lower priced property can grow faster than larger sized, more expensive homes. You can always, move your built up equity into a larger home down the road. If you plan on staying on rent and are thinking to save more down payment to buy a bigger home, you need to remember that home prices are trending upwards. Your savings can lose its value with price appreciation.
My best advice for young people who have student debt, is to pay off your student loan as quickly as possible, and to start saving early and to build up enough savings to be able to put as down payment for home buying.
Sometimes, young home buyers can get some financial help from their downsizing parents or grandparents.
The concept of co-ownership is also fast gaining popularity among individuals who do not qualify on their own. We can also expect a demographic shift with more younger home buyers moving to smaller towns and cities, and more renters as opposed to home owners. This shift is evident from the increase in the number of rental buildings coming up in Mississauga.
Contact Team Kalia for Buying Your Home in Mississauga or Brampton