Home sales drop 13% in a cool summer real estate market in Mississauga

Real estate activity cooled down quite a bit in Mississauga in June.

Overall, home sales decreased 13.1 per cent month-over-month in Mississauga, according to the latest report from real estate brokerage Zoocasa.

Despite a Bank of Canada rate cut at the beginning of last month, many buyers kept their home purchase decisions on hold across the GTA, according to the Toronto Regional Real Estate Board.

“The Bank of Canada’s rate cut last month provided some initial relief for homeowners and home buyer,” said Toronto Regional Real Estate Board president Jennifer Pearce. “However, the June sales result suggests that most home buyers will require multiple rate cuts before they move off the sidelines.”

In Mississauga, townhouse sales experienced the largest month-over-month drop, decreasing by 35.3 per cent, followed by condo apartment and detached sales, which fell by 26.2 per cent and 14.8 per cent, respectively, according to the Zoocasa report.

However, not all property types saw a drop in sales. Semi-detached sales were up by 17.7 per cent from May, reaching 80 sales, while condo townhouse sales also increased by one per cent from May.

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The lack of urgency from buyers has led to nearly all property types sitting on the market for longer than in May.

The average property days on the market for Mississauga jumped up from 28 days in May to 33 days in June, with every property type besides townhouses seeing an increase in listing days on the market.

Average home prices fluctuated across property types, though none saw any extreme changes.

The average price of a townhouse in Mississauga increased the most month-over-month by 1.8 per cent to $1,039,745.

While the average price of a condo townhouse decreased the most month-over-month by 3.4 per cent to $803,584. The average price of a condo apartment was lower at $626,081.

The average price of a detached home experienced a modest increase of one per cent from May, now reaching $1,551,752.

Though overall active listings were up 10.6 per cent in Mississauga from May, new listings were down 5.9 per cent.

This decline was largely driven by a 15.8 per cent month-over-month drop in detached new listings. Semi-detached and condo apartment properties are still experiencing a boost in new listings though, with both up month-over-month by 17.5 per cent and 3.7 per cent respectively, according to Zoocasa.

Across most of the GTA, buyers have choices with plenty of listings.

“The GTA housing market is currently well-supplied,” said Toronto Regional Real Estate Board chief market analyst Jason Mercer.

“Recent home buyers have benefitted from substantial choice and therefore negotiating power on price. Moving forward, as sales pick up alongside lower borrowing costs, elevated inventory levels will help mitigate against a quick run-up in selling prices.”