Review of Real Estate Activity in 2009
Now that 2009 has drawn to a close, it is interesting to go over the real estate activity which has taken place in the Oakville neighborhood of Clearview. Clearview is located in the northeast part of Oakville, bounded by the QEW Highway to the north, Winston Churchill Blvd. to the east, Sheridan Garden Drive to the south, and Ford Drive to the west. There are just over 2000 residences in Clearview, comprising of detached homes, semi-detached, link homes (joined below grade), and freehold townhomes.
After a slow start at the beginning of the year, real estate activity really picked up towards the end of March, and an active market continued throughout the balance of the year.
End result – during 2009 there were 72 properties in Clearview which were sold through the MLS. Of the 72 total sales, 42 were located north of Kingsway Drive, and 30 were located south of Kingsway Drive. Of the total 72 sales, 51 were detached properties – the remainder being a mix of semi-detached, link, and attached freehold townhouses.
2009 Statistics for Clearview:
For the detached homes sold, several interesting statistics are available:
– the median* listing price was $515,175
– the median* sold price was $509,500
– average days on the market was 35
– average sold price as a percentage of listing price – 98% per cent
– highest sale price for a detached home in Clearview during 2009 – $620,000
– lowest sale price for a detached home in Clearview during 2009 – $335,000
*we use the median, rather than the average price, as a more accurate measure of sales – average price points can be inflated by one or two high-end sales, whereas median is simply the midpoint for all sales in the area.
The vast majority of these detached homes were 2 storeys, had 4 bedrooms, and a double car garage. Selling prices south of Kingsway Drive were approximately 3% per cent higher than those north of Kingsway Drive.
Outlook for 2010:
With interest rates remaining low, and the Canadian economy slowly improving, many real estate experts are cautiously optimistic about where the market is headed in 2010. In early January, we are seeing last year’s shortage of listings continuing into the new year, which bodes well for prices in 2010.
As for Oakville in general, and Clearview specifically, the outlook is bright. One thing that will add value to the neighborhood – the addition of the new Clearview Public Elementary School. One of the only objections that some potential home buyers have had in the past was the need to bus their children to a public elementary school, and now that objection will be gone.
On December 15th, 2009 official groundbreaking took place for phase one of the new Sheridan College campus at Mississauga Square One. The new college facility is being built under the Federal-Provincial Infrastructure Stimulus Funding program, and as such, the 150,000 sq. ft. building must be completed by March 31, 2011. Some 1,700 students will attend classes when the school opens in the fall of 2011, including 1,200 business students, plus there will be 560 spaces for new Canadians who are being retrained to enter the workforce. Actual construction will commence in February, 2010, and is being managed by Bird Construction.
The campus will be located on an 8.5-acre parcel of land, just north of the Living Arts Centre, between Prince of Wales Dr. and Rathburn Rd. W. and will include such features as a pedestrian bridge, open parkland and a traffic roundabout.
When phase two of the campus is built after 2011, there will be room for 5,000 students.
How will this new campus impact condo investment in the Mississauga City Centre (MCC)?
Well, the news is all good. Vacancy rates are currently low in the MCC area, despite all the new developments recently completed. And the addition of 1700, and later up to 5000 university-age students in the immediate area will only add to the pool of available renters. Current large projects in the sales stage, such as Amacon’s Parkside Village, should see a sales boost from this new campus. We predict a decline in rental vacancy rates once the campus is up and running, with the potential for a firming of rental rates.
Investors looking for long term potential gain in the Mississauga Square One city centre area should look upon the addition of the Sheridan College campus as a major windfall.