Condo prices drop nearly 7% in Mississauga

Some good news for those looking for a condo in Mississauga — prices are down.

The real estate numbers are in for August and overall prices have remained flat, according to the latest report from real estate brokerage Zoocasa.

July was a slow month for real estate in Peel Region overall but activity picked up again in August, the report notes.

But lack of properties continues to be an issue across the Greater Toronto Area as the number of new listings decreased in August by 8.41 per cent.

“More balanced market conditions this summer compared to the tighter spring market resulted in selling prices hovering at last year’s levels and dipping slightly compared to July,” said Toronto Regional Real Estate Board (TRREB) chief market analyst Jason Mercer.

“As interest rates continued to increase in May, after a pause in the winter and early spring, many buyers have had to adjust their offers in order to qualify for higher monthly payments. Not all sellers have chosen to take lower than expected selling prices, resulting in fewer sales.”

In Mississauga, the average price of all home types has remained flat, decreasing just .04 per cent to $1,057,232 compared to last month. The number of new listings improved slightly, by just 1.04 per cent to 389 units.

Detached homes and condo apartments continue to be the most in-demand property type
month-over-month, Zoocasa notes.

Buyers are either looking for spacious, family homes or affordable, entry-level condos.

The average price of a single-family detached home is up 2.17 per cent to $1,563,717. A total of 169 homes traded hands in Mississauga.

While condo sales grew, with sales up by 12.32 per cent month-over-month, the average price decreased by 6.94 per cent to $629,894. There were 155 units sold in August.

“With pricing being more favourable in these tough economic times and supply increasing slightly, we may see buyer interest continue to grow for condo apartments in Mississauga,” Zoocasa notes.

Although the Bank of Canada held the key interest rate steady at five per cent today, real estate experts point to continued uncertainty about the economy, interest rates and lack of housing supply for changing markets.

“Looking forward, we know there will be solid demand for housing – both ownership and rental – in the Greater Toronto Area (GTA) and broader Greater Golden Horseshoe. Record immigration levels alone will assure this,” said Toronto Regional Real Estate Board (TRREB) president Paul Baron.

“In the short term, we will likely continue to see some volatility in terms of sales and home prices, as buyers and sellers wait for more certainty on the direction of borrowing costs and the overall economy.”

See the complete Zoocasa report here, and the TRREB report here.