Average price for Mississauga real estate lowest in 2 years after nearly $600K year-over-year drop for detached homes
The average price for real estate in Mississauga fell to its lowest mark in two years last month as increased borrowing costs continued to drive prices down.
The latest monthly GTA real estate market statistics from the Toronto Real Estate Board (TRREB) showed an average sale price for all dwelling types combined of $920,587 in January. The last time Mississauga’s overall average was lower than that was in January 2021 at $890,020.
Real estate prices nearly doubled in four years, climbing from a combined average of $644,834 in February 2018 to a peak of $1,225,339 for all dwelling types combined in February 2022.
Since then, the market has gone into a steep decline, losing 24.9 per cent in value in just the past 11 months.
Detached and semi-detached homes have seen the sharpest declines
The average price for detached homes peaked out at an average price of $1,964,077 in January 2022. Last month’s average of $1,379,588 represented a 29.7 per cent year-over-year drop. The last time the average price for detached homes in Mississauga was below $1.4 million was in November 2021 at a monthly average of $1,318,779.
The average price for semi-detached homes peaked in February 2022 at $1,314,703 and has fallen by $398,759 — or 30.3 per cent — to an average of $915,944 last month.
Townhouse-style condominiums also peaked in February 2022 at $1,012,860 and have since fallen by 21.2 per cent to a January average $797,702. Likewise, apartment condos fell from a February 2022 peak of $736,006 to $626,401 last month, marking a 14.9 per cent drop.
While those price declines have led to the lowest combined average real estate price seen in Mississauga for two years, it hasn’t translated to an increase in sales — quite the opposite.
Real estate sales in Mississauga last month were by far the lowest January total since TRREB started sharing records in 1996 at just 262 total transactions. The lowest January sales total prior to last month came in 2009 with 311.
TRREB has attributed the drop in sales and prices to the Bank of Canada (BoC) raising its benchmark interest rate from 0.25 per cent to 4.5 per cent since March of last year.
“Home prices declined over the past year as homebuyers sought to mitigate the impact of substantially higher borrowing costs,” said TRREB chief market analyst Jason Mercer in the organization’s monthly analysis.
“Home sales and selling prices appear to have found some support in recent months. This coupled with the Bank of Canada announcement that interest rate hikes are likely on hold for the foreseeable future will prompt some buyers to move off the sidelines in the coming months,” added TRREB president Paul Baron.
However, in the wake of the BoC’s most-recent 0.25 per cent rate hike on Jan. 25, BoC governor Tiff Macklem warned that the central bank foresees continued downward pressure on the housing market through at least the first half of the year. And that the rate increase pause is dependent on higher interest having the desired effect of slowing the economy and taming inflation.
“We are pausing interest rate hikes to assess whether we’ve raised interest rates enough to get inflation all the way back to target,” Macklem said while speaking to reporters in Quebec.
“The fact that we’ve paused may bring people back into the market. These are things we’re going to have to watch,” he said.
Despite recent declines in prices, home ownership in the GTA remains out of reach for most without qualifying for and assuming significant debt far above and beyond what has been traditionally considered financially prudent.
Regardless, both TRREB and the BoC are counting on increased immigration to increase housing demand again as early as the second half of 2023.
“Record population growth and tight labour market conditions will continue to support housing demand moving forward,” said Baron.
Three unique real estate listings that caught our eye this week – Western Investor
Western Investor is famous for the breadth of its commercial real estate listings. It is perhaps the only publication in Canada where investors can find a high-rise office tower, a remote waterfront lodge, a golf course, an industrial warehouse or a small-town bowling alley for sale within its pages.
We often have unique listings and there are three this month that stood out.
First is an entire city block for sale in downtown Calgary.
The 2.83-acre site borders the popular East Village, and the land is rezoned for a high-density mixed-use project with a generous floor-ratio-area (FAR) of 20.
Flexible commercial zoning allows for residential rentals, condos or hotel and a variety of commercial uses. Current visions include four high-rise towers, but all options are on the table. It is listed by Goodman Commercial, Vancouver, and NAI Commercial, Calgary, at an asking price of $32.4 million.
Second is a rare listing in B.C.’s Central Okanagan.
The property is the 11.3-acre Vibrant Wine vineyard estates in east Kelowna. The property includes a luxury 9,000-square-foot Italian-style villa. The eight-acre vineyard was named the No.1 winery on Trip Advisor and its product was ranked the Best White Wine in the World in 2013. A proven venture that can be expanded, the entire property and equipment is co-listed by HM Commercial and Jane Hoffman Realty, Kelowna, at $13.5 million.
Third of the unique listings is a productive gold mine.
With a private residence and a two-title acreage in the Cariboo, the property covers 3.2 acres near the original Gold Rush town of Likely, B.C.
The land includes an updated three-bedroom house, but the attraction is the operating gold mine. A two person operation on a five-year renewable permit that covers a 100-acre bench, only nine acres have been worked so far, but there has been a consistent average return of 1 ounce of gold per 100 yards mined, with the highest return of 8 ounces in under 100 yards. Note: the price of gold now is around US$1,980 per ounce. The entire operation, including all the mining machinery, is listed by 3A Group, Re/Max Nyda Realty in Agassiz, B.C., at $1.45 million.
Simcoe County's real estate market shows signs of recovery – CTV News Barrie
Real estate experts paint a cautiously optimistic outlook after a year of downward market trends across the country.
Trends in Simcoe County show an increase in viewings and buyers re-entering the market after key interest rate hikes from the Bank of Canada warded off many last year.
Lance Chilton, the broker of record at Re/Max Hallmark Chilton Realty, calls the local market “more or less balanced.”
“Inventory conditions are the same as they once were in 2018,” he noted.” From 2020 to 2022, prices rose to about 43 per cent, which was rather rapid.”
Chilton said key interest rate hikes eventually bottomed out the local market by about September – that’s when home prices that peaked at around $1 million dropped to about $730,000.
“Since then, it’s recovered by about five per cent,” Chilton said. “In fact, we actually saw showings increase for the first time in about six months.”
The Barrie and District Association of Realtors (BDAR) confirms that showings have picked up again, with people getting that “spring fever.”
However, the one key issue that remains is low inventory.
“We saw prices dip because of interest rates and people pulling out of the market, but we never saw that supply come back online,” said Luc Woolsey, BDAR president, adding the situation creates multi-offer bids.
“So there’s still a lot of people having to come in firm, waiving conditions and inspections because they’re having to compete.”
‘Million Dollar Listing’ star warns CA mansion tax will deliver ‘hardest hit’ to market since 2007 – Fox Business
Though it’s home to some of the most luxurious and expensive real estate listings in America, California is readying to pass a housing bill that one “Million Dollar Listing” agent warned could create the “hardest hit” to the market since the 2007-08 crash.
“In about ten days or so, there’s a measure called the ULA measure that’s going to go into effect, which is going to be probably the hardest hit to the real estate market that we’ve seen since 2007,” broker and television personality Josh Altman said on “Varney & Co.” Monday.
Altman’s comments come in response to the recently-passed “United to House L.A.” (ULA) measure in California, which adopts a so-called “mansion tax” on property sales or transfers over a certain value to pay for affordable housing.
Properties sold above $5 million but below $10 million are subject to a 4% sales or transfer tax, while properties that sold for more than $10 million will face a 5.5% tax, according to the city clerk’s voter information pamphlet.
‘MILLION DOLLAR LISTING’S’ JOSH ALTMAN GIVES INSIDE LOOK AT ‘BOTCHED’ STAR PAUL NASSIF’S $27.9 MILLION HOME
At least 92% of taxpayers’ money would “fund affordable housing under the Affordable Housing Program and tenant assistance programs under the Homeless Prevention Program,” the pamphlet also clarified.
“The way that this ULA measure was passed is just mind-boggling to me,” Altman added, “and I think it’s one of the most ridiculous bills that I have ever seen in my entire 20-year career.”
The Los Angeles city administrative officer estimated the proposed tax could generate $600 million to $1.1 billion in revenue each year. However, he noted it would “fluctuate” based on how many property transactions with values within the scope of the tax actually occur.
While those who support the measure argue it could help solve L.A.’s housing affordability and homeless crisis, others like Altman caution the tax policy would lead to higher home prices and bureaucracy.
“Think about these people that bought houses three years ago for $5 million and they want to sell now,” Altman hypothesized. “The market’s down, rates are up, that happens. But now they got to cut a check for $200,000 out of their own pocket because there’s no profit on that. So it’s really going to rock the real estate market that we’re in here in Los Angeles.”
California’s real estate market, the “Million Dollar Listing” star further argued, is on “a race to the bottom” over the next 10 days as buyers try to close deals before the mansion tax is enacted.
“I’m seeing deals get done that should never have gotten done,” the L.A. agent said. “I’ve even done as much as, on a $28 million listing that I have, we have offered a $1,000,000 bonus for anybody who buys and closes before April 1.”
The “main issue” with the ULA measure remains its “trickle down” effect — not on mansion or luxury homeowners, but on working and middle-class California families.
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“People who voted who said, ‘Oh, I don’t have a $5 million house,’ which by the way, is not a mansion in L.A., we’re talking about a four-bedroom, 4,000 square-foot house in L.A. is $5 million, so this isn’t a mansion tax,” Altman said.
“This isn’t a $30, $40, $50 million house tax – these are regular people that work bill to bill, that have to pay their mortgage just like everybody else, and now they’re being penalized here.”
FOX Business’ Aislinn Murphy contributed to this report.
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