Mississauga detached home prices went down $73,800 this summer

The real estate market continues its downward trend in Mississauga as experts predict the deepest decline in 50 years across Canada.

While it will still cost around $1 million to buy a typical detached home in Mississauga, the latest numbers are showing price declines this summer.

The biggest drop is in the benchmark price for a single-family detached home. A benchmark price is defined as a typical home in a community, based on the most popular combination of features.

In Mississauga, the July 2022 benchmark price for a single-family detached home was $1,601,000, according to the Toronto Regional Real Estate Board (TRREB) July report. That’s a drop of $73,800 from June’s the benchmark price of $1,674,800.

It’s important to note that prices are still up year over year — 13.8 per cent compared to this time last year.

But experts say real estate prices are trending downward.

“In the Toronto and Vancouver areas, the decline in activity is quickly becoming one of the deepest of the past half a century,” the RBC August housing report notes. “Prices are sliding fast, and the exuberance that permeated these markets earlier this year is being replaced by fear.”

What’s behind the price drop?

RBC blames soaring interest rates. Higher borrowing costs have pushed many buyers to the sidelines and reduced the budget of others.

That may be why condo prices see a lower decrease in price as home buyers look for housing in their budget.

In July, the benchmark apartment price was $682,800 in Mississauga, down from $702,300 in June.

Similarly, townhouses dropped just slightly from $936,900 in June to $903,900 in July.

Uncertainty in policies related to mortgage lending and housing development may be causing people to hold off on buying right now.

“Many GTA households intend on purchasing a home in the future, but there is currently uncertainty about where the market is headed,” said TRREB CEO John DiMichele.