I was recently interviewed by Point2Homes, a large internet real estate web portal, about the state of the Mississauga real estate market…. here is an excerpt from the Q&A session:
1. How has the Mississauga real estate market performed last year, and what are your expectations for 2016?
The Mississauga real estate market mirrored the overall Greater Toronto Area(GTA) in 2015. We saw very strong demand throughout the year, with multiple offers and bidding wars being the norm. There was an acute shortage of listings for freehold properties, and with nowhere left to build in the City of Mississauga, detached homes increased by about 9 percent during the year. What’s even more remarkable is that, on average, the average selling price for detached homes was 100% of the asking price – in other words, on average, throughout 2015, buyers were obliged to pay the full asking price for a detached home.
High-rise condos, where there are still many being built, especially in the Square One area of Mississauga, saw price increases of 5 percent overall. This is strictly a reflection of supply and demand, for unlike detached homes, there are many new condo projects coming on stream. Condos performed very well in 2015, in spite of the record number of new projects being completed. The average condo in Mississauga sold at 98% of asking price throughout 2015. Rental rates are also at record highs, something that condo investors can appreciate.
The strength in this long bull market has been built on three pillars: low interest rates, which make higher priced properties affordable; an overall good economy in southern Ontario, where most people have jobs; and immigration, where on average, 100,000 people move to the GTA on an annual basis. As long as these three pillars remain in place, my expectation is that the strength in the market will continue.
For the rest of the interview, check here.
Mississauga Real Estate in 2015
Here is my latest video on the Mississauga real estate market, providing a summary of what happened in 2015, and what to expect in 2016.
In a nutshell, the market provided a 9.5% gain in prices for “freehold” properties – i.e. detached homes, semi-detached homes, and freehold townhomes. The condominium market, specifically centered around the Square One shopping mall in Mississauga, showed a 6.5% percent increase, which is still a very healthy rise in spite of many new condo completions in the area.
Future Predictions for 2016
We predict a continuation of the strong market in 2016, based on the three underlying principles which have supported the market over the last few years:
1.) continued low interest rates
2.) continued decent economy in southern Ontario
3.) continued strong immigration into the Greater Toronto Area
As long as these three principles, or “pillars” as they are described in the video, remain in place, it is our estimation that the strong real estate market should continue in 2016.