Home prices decline 5%, falling back below the $1M mark in Mississauga

Despite an upward trend in the real estate market, the average home price has dropped below the $1 million mark again in Mississauga.

The February real estate numbers show market conditions “heating up” in Peel Region, according to the latest report from real estate brokerage Zoocasa.

Sales improved by 20 per cent month-over-month and new listings increased almost 41 per cent from January across Peel, the report states.

“This is great news for buyers who have been struggling to find the right property due to tight inventory,” the report notes.

The average price in the region has remained quite flat. At $1,037,245, it increased by just over one per cent from January, the report notes.

In Mississauga, the average price has actually declined by five per cent month-over-month to $996,259.

The largest price drop was in the detached home sector, falling six per cent to $1,498,421, which is still unaffordable for many people.

Condo apartments went up six per cent to an average price of $630,583 and freehold townhouses, increased 10 per cent to $1,123,342.

Key market indicators including sales, new listings and active listings were up on a month-over-month basis in Mississauga.

As in previous months, detached properties and condo apartments had the most sales in Mississauga, at 146 and 168 sales respectively. This marks an 11 per cent increase in sales for detached homes and a 34 per cent increase for condo apartments.

Condo townhouses experienced a whopping 77 per cent increase in sales month-over-month, up to 92 units trading hands in February in Mississauga.

Affordability is still key for buyers as the Bank of Canada’s overnight lending rate has yet to come down after an increase to five per cent last year. Although many fixed rates have decreased from the October 2023 peak, affordability is still tight for many Canadians and sellers are pricing accordingly.

Buyer psychology has shifted across Ontario and those who are motivated to buy are more willing to
tweak their real estate plans and purchase a more affordable home type as opposed to holding out
for a rate cut.

“This is likely why we’re seeing an increase in competition for more affordable homes,” the report notes.