Six months after the onset of the crisis, house prices in Mississauga and surrounding cities are on the rise year over year, with the small apartment market experiencing significant price growth as residents flee condos in looking for larger yards and a little extra space.
The Toronto Regional Real Estate Board (TRREB) reported 10,775 home sales through its MLS system in August, up more than 40% from 7,682 the same month a year ago. Sales of single-family homes rose 50.6% and semi-detached homes by 66.8%, while condo sales growth was slower at 10.9%.
The average price of a home sold in the area was $ 951,404, up more than 20% from $ 792,134 a year ago.
“Between March and June… the vendors pulled their homes off the market. A lot of people were worried about strangers walking around their homes, ”says Michael Grant, sales representative at Royal LePage Infinity.
“Around mid-July… all of a sudden it seemed like everyone had the same feeling: ‘Let’s jump on the market’. ”
Despite record sales in July and August, TRREB said cumulative sales for the year had not caught up to this time of last year, given the size of the sales decline in the spring. Only single-detached home sales have broken 2019 levels so far this year.
“Inside town people are selling single-family homes, low models, single-family homes, semi-detached, and they’re moving out of town,” says Charlene Williams, real estate broker at Real Estate Homeward Brokerage.
Zoocasa, a real estate brokerage and website, says home sales are up 35% year over year in Peel Region, with 2,301 homes sold in Mississauga, Brampton and Caledon.
Unfortunately for potential buyers looking for a break, the average price of properties sold hit $ 897,391, a 20 percent increase from last August. Since February, the last full month before the implementation of emergency measures against COVID-19, the average price of homes has increased by 4%.
Zoocasa says that overall, the Region of Peel remained a sellers’ market in August.
As for Mississauga in particular, condo owners have a little more difficulty unloading their units.
Zoocasa says that although the total number of homes sold in Mississauga in August rose 22% from a year ago, reaching a total of 950, there was a clear divergence in growth between freehold properties and freehold properties. condominium properties.
According to Zoocasa, sales of single-family homes were up 49 percent year-over-year and the average price hit a record high of $ 1,307,832, a 23 percent increase from last August.
Compared to last year, new listings were up 26 percent to 586 properties, but active listings were down 16 percent, revealing a higher level of demand for this type of property.
In contrast, condominium apartment sales fell 11% per year, while new listings rose 77%. The increased supply combined with reduced demand has pushed the Mississauga condominium apartment market close to the threshold between a balanced market and a buyer’s market.
Despite the drop in sales, the average price of condominium apartments rose 13% to $ 540,877 in August.
TRREB says the trend is apparent across the greater Toronto area, as condos increasingly hit the market as people move to low-rise communities, “with a growth in condominium listings. well above the growth in condo sales, ”according to Jason Mercer, chief market analyst at TRREB.
Board chair Lisa Patel attributed some of the overall market sales growth in August to “improving economic conditions and” very low borrowing costs “as mortgage rates remain low. According to Canadian statistics, nearly 2.2 million Canadians were unemployed in July, nearly double the number in February, but unemployment levels were down from record levels.
“It is mainly investors who put condos on the market because they cannot find tenants. Renters can’t pay the rent… they’re the ones who lost their jobs, ”says Williams.
As fall dawns, market watchers examine impact of mortgage deferral rates and the end of other state income support on the housing market, separate interest rate report says Thursday by Finder.com.
Sri Thanabalasingam, senior economist at TD Bank, said a report from Finder.com indicated that “a partial recovery in the labor market and the end of mortgage deferrals could increase housing supply later this year , which could put downward pressure on prices ”.
“People want to see what will happen if the postponements have an impact on house prices,” Grant says. “They want to hold back, but they want that pre-approval, they want to lock in that (mortgage) rate… They can afford more homes with lower interest rates. ”
Not everyone has a grim outlook: Survey of Remax brokers suggests the average selling price of homes in Canada could increase 4.6% through the rest of 2020, due to Canadians looking to flee urban centers looking for more space.
“Mainly in government, banking, insurance… the clients I worked with continued to work during the pandemic. There was no downtime or layoffs, they just went to work from home, ”says Grant.
“It’s a bit like the haves versus the have-nots. There isn’t a lot of middle ground in Toronto. ”
With files from Anita Balakrishnan, The Canadian Press