Competition has been rising in the Mississauga real estate market over the last decade, and there are plenty of reasons this buzzing urban hub has become such a hot spot. Residents of this city enjoy cultural diversity, job opportunity and a balanced active lifestyle. With bike lanes, golf courses, Port Credit beach and a bounty of public parks, many are clamouring to make the move to this western GTA city.
While COVID-19 has caused uncertainty across the country, the real estate industry has been resilient. As an essential service, homebuyers continue to search for real estate options in Mississauga, despite fears surrounding the pandemic. Equipped with technology solutions, agents have been facilitating transactions digitally, allowing even remote homebuyers to purchase properties from afar.
If you’re interested in this market, dive into the latest Mississauga housing and condo trends to better understand where this market stands, and what we can expect in 2021:
Shifting Lifestyle Preferences Canada-wide
One of the key factors affecting the Mississauga real estate market are the shifting lifestyle preferences that have taken place over the past year.
As a result of the pandemic, demand for detached and semi-detached homes is climbing. Meanwhile, urban condo demand has declined, especially in markets such as Toronto. For many, this paints a different picture than what the market looked like at the beginning of 2020. Although, it’s important to note that while condos aren’t selling for as much as they were earlier this year, the condo market is by no means crashing.
During the pandemic-induced lockdown earlier in the year, those who lived in urban condos found themselves forced to use their small space for a variety of lifestyle needs. The demand on the home as a multi-purpose space for work, school, fitness, entertainment and relaxation has caused some to reevaluate just how much living space they need. The appeal of city-living for some has dissipated, as more people look outside the city for a more affordable home with larger square footage.
This has caused more homebuyers to flock from Toronto to suburban regions such as Mississauga, and beyond. The city of Mississauga is viewed as the perfect distance from the Toronto’s downtown core, providing a city feel along with all the benefits of living in the suburbs.
The city is peppered with relatively young subdivisions compared to Toronto’s older neighbourhoods. Mississauga also promises more neighbourhood green space and private outdoor space, so people can remain socially distanced while enjoying the outdoors. Meanwhile, avoiding shared spaces in Toronto condos like elevators and lobbies can ease anxiety, for some.
In Mississauga, homebuyers can even save on Land Transfer Tax which only needs to be paid the province, whereas in Toronto, buyers are required to pay a provincial and a municipal land transfer tax – a sizeable financial burden for Toronto homebuyers.
Mississauga House & Condo Prices
While Mississauga is hardly the most affordable market, compared to Toronto, it certainly is. According to TRREB, in the month of October, the average Toronto detached home price hit $1,470,857, a semi-detached home currently costs about $1,154,087, the average townhouse costs $1,068,860, and a condo will set you back an average of $668,161.
In contrast, in Mississauga the average price of a detached home was up 15 per cent year-over-year, reaching $1,239,382. The average price for semi-detached homes in Mississauga also climbed year-over-year to $848,990. As a result of the influx of condo inventory, the average price of a condo apartment in Mississauga averaged $536,435 year-over-year. Home prices in Mississauga continue to rise, indicating strong demand in this city. Surrounding areas in Peel Region are also experiencing this same growth trajectory when it comes to property prices. While average prices across property types remain lower than within neighbouring Toronto, the difference is not huge.
As prices rise, so too does the need for more affordable housing in Mississauga. In Peel Region, many people are living in housing they can’t afford – notably 70 per cent of low-income and 30 per cent of middle-income households.
In 2017, Mississauga introduced the affordable housing plan which aims to keep the city affordable for middle-income earners by incentivizing the creation of more reasonably priced units whenever possible. Should this strategy play out as planned, it could mean that over the next decade, the region will see upwards of 5,000 affordable units added to the Brampton, Mississauga and Caledon real estate market.
House & Condo Sales in the Mississauga Real Estate Market
Overall, Mississauga continues to be a seller’s market. Despite strong sales in Mississauga’s housing segment, the condo segment is not as strong.
In October, Mississauga house sales were sitting at 943. Low inventory and high demand were the recipe for a competitive market. In contrast, condo sales were down 11 per cent year-over year, while condo listings skyrocketed 77 per cent. This has resulted in some Mississauga condo owners facing challenges selling their units.
Yet, many believe the Mississauga condo market will quickly bounce back, considering the amenities in the area and affordability compared to high Toronto prices.
The Mississauga housing and condo market is experiencing contrasting trends. As people crave spacious floor plans in suburban areas, Mississauga offers an abundance of amenities while still being in proximity to Toronto’s downtown core.
Baker Real Estate Announces New President and Geographic Expansion – Canada NewsWire
TORONTO, Dec. 1, 2020 /CNW/ – Baker Real Estate Incorporated, Canada’s leading pre-construction residential and condominium sales and marketing company, today announced the appointment of Harley Nakelsky as President, effective immediately.
“Harley is a seasoned professional who has been a valued member of Baker’s senior leadership team for eight years, providing our clients with sound strategic advice and sales support,” said Baker CEO, Barbara Lawlor. “This expanded role, along with our ongoing investments in talent and technology, provides us with a strong foundation to grow our business and serve clients across Canada.”
“I am very excited by the opportunity to reinforce Baker’s proven track record in the Toronto area and, increasingly, beyond,” said Harley Nakelsky. “Our successful experience with launching new developments and selling down current developments despite COVID-19, has positioned us well for 2021 and beyond.”
Building on Baker’s long-term success, Baker is expanding into the Greater Vancouver market with the launch of Baker West, providing the firm’s bespoke service to its clients and local developers.
Jeff Clark, Senior Vice President will continue to be responsible for our international initiatives, including the development of Baker West and the partnerships that will ensure our success in the Vancouver area, and Debbie LaFave, Senior Vice President, will continue to lead our successful business in the Montreal market.
About Baker Real Estate Incorporated:
Baker is a member of the Peerage Realty Partners group of companies. For over 25 years, Baker has been Canada’s leading pre-construction residential and condominium sales company. With offices in Toronto, Montreal and Vancouver, it deploys its deep experience to provide consulting on all aspects of a development, ensuring clients strategically customize their projects and optimize returns with the ideal unit mix, floor-plan, pricing, and marketing. With a growing market share, Baker has sold over 100,00 units and generated $80-billion in new home sales.
About Peerage Realty Partners
Founded in 2007, Peerage Realty Partners, a subsidiary of the Peerage Capital Group, offers a unique professional partnership model for entrepreneurial real estate firms. Peerage transacts over C$16 billion in annual sales volume, with over 3,000 sales representatives and 78 offices. In addition to Baker Real Estate Incorporated, our partners include leading luxury brokerage firms: Chestnut Park Real Estate (Ontario,) Sotheby’s International Realty Canada, Jameson Sotheby’s International Realty (Chicago), Madison & Company Properties LLC, (Denver), as well as Fifth Avenue Real Estate Marketing, a leader in new development and condominium sales and marketing in British Columbia, and StreetCity Realty, a progressive brokerage in Ontario.
SOURCE Baker Real Estate Incorporated
For further information: Barbara Lawlor, CEO, Baker Real Estate Incorporated, Tel: 416-923-4621, Email: [email protected]
Commercial real estate: Trends to watch in 2021 – The Globe and Mail
The story of Canada’s commercial real estate in 2021 will depend on how many COVID-19 plot twists have caused permanent changes in leasing and transaction patterns.
Industrial and retail real estate trends that had already emerged in 2019 were greatly accelerated by the pandemic, say industry professionals. Warehousing and distribution centre construction and lease rates, already on the upswing, took off as e-commerce increased. Bricks-and-mortar retail has been hit harder as some retail chains founder and mall tenants struggle to make their rents during lockdowns.
The office sector has been thrown into disarray and forecasts are divided on where office vacancies and trends are heading.
“One camp is predicting work-from-home could become the new norm and the other is saying we will return to how things were previously,” says Matt Picken, Jones Lang LaSalle Inc.’s (JLL) national lead of capital markets.
“I think there will be a compromise. Clearly there’s some cost saving involved in work-from-home but to the detriment of collaboration and office culture.”
JLL’s third-quarter 2020 office report showed a total office vacancy rate in Canada of 10.8 per cent and the “largest negative quarterly net absorption in over a decade, totaling nearly 2.7 million square feet of occupancy losses.”
But Mr. Picken remains confident in an office rebound once a vaccine is in place. “It’s too early to write off the office market. Our vacancies were so low for such a long time, this is not necessarily such a bad thing.”
Scott Addison, president of brokerage services Canada for Colliers, says available space, including lease and sublease vacancies, in major downtown markets could increase to more than 10 per cent in the next 18 months.
“The amount of sublease space coming to market is dramatic – 350 per cent more sublease space came to market in the last quarter than last year at this time.”
Mr. Addison says companies may have taken more space than they needed, based on big growth projections, and firms with multiple locations may be consolidating as leases come up.
According to Ray Wong, vice-president of data operations at Data Solutions for Altus Group, there are discussions between office landlords and tenants about downsizing, renegotiating rents and even increasing space requirements to accommodate physical distancing.
“On top of that, we’re seeing increased inquiries into the suburban markets, closer to where people live.”
Mr. Wong adds that some companies are looking into relocating further out of the big cities to markets such as Kelowna, B.C., Kitchener-Waterloo, Ont., and Halifax to get more bang from the buck.
That drive to lower density locations might help Calgary, says Greg Kwong, regional managing director in Calgary for CBRE.
The office vacancy rate in downtown Calgary in third-quarter 2020 was 28.7 per cent, according to CBRE statistics. Mr. Kwong says the continuing crisis in the energy sector plays as big a role in Alberta as does COVID-19.
Vancouver is not experiencing the office vacancy woes felt elsewhere to the same extent, according to CBRE’s Vancouver managing director Jason Kiselbach.
“We entered 2020 with one of the lowest vacancies and we still have that,” he said, adding that a diversity of business, including film production and health sciences, as well as constrained office supply has contributed to a favourable climate.
Industrial properties, particularly warehouse and distribution, are bright spots for all markets in Canada. A trend to low vacancies and increasing lease rates was boosted significantly in 2020 by COVID-19′s influence on the rise of online shopping. Experts say the trend will continue through 2021 with still more construction and higher rates.
Mr. Wong says he would tell investors that their most promising bet for 2021 would be industrial land with room for possible expansion on a major arterial road. There is little available space in the market, he says. Third-quarter 2020 figures show national availability at 3.1 per cent, with Toronto figures at 1.9 per cent and Vancouver at 2.3.
In Vancouver, where available land is at a premium, industrial is beginning to go multistorey. Oxford Properties Group’s Riverbend Business Park is the first multistorey facility of its type in the Vancouver area.
Frank Magliocco, real estate leader with PwC Canada, says there is also a trend to some “reshoring” of manufacture because COVID-19 revealed the disruptions that can happen to global supply chains because of a pandemic.
“That’s also driving wind under the sales of industrial.”
Malls and power centres are another uncertain sector of industry. Some observers are seeing excess retail land being converted to residential and industrial uses.
“There is potential to convert some non-performing shopping centres to last-mile fulfillment centres,” JLL’s Mr. Picken says. “The numbers are going to start to break in favour of this type of development because there’s such a shortage of warehouse space in key urban areas.”
Mr. Addison predicts that big regional malls and local corner stores will return post-COVID-19, but consumers may still choose e-commerce over a trip to a power centre.
“Because of the pandemic, those who weren’t using e-commerce are finding ‘this is easy, it’s pretty good.’” Mr. Addison says. “In February, it’s snowing, you’re in Calgary. Are you going to drive out to a power centre or are you just going to order it off Amazon and have it delivered that afternoon?”
Investors show increasing interest in multifamily residential
Emerging Trends in Real Estate 2021, an annual survey of real estate professionals conducted by PwC and the Urban Land Institute, showed 61.4 per cent of survey respondents favoured buying moderate income apartments; 48 per cent rated single family rentals as a buy and 42 per cent recommended lower income rentals, the top three commercial real estate categories in the survey.
According to Ray Wong, vice-president of data operations at Data Solutions for Altus Group, there has been some increase in vacancy in downtown Toronto in multiresidential, but that is because of a conversion of Airbnb units to longer-term rentals.
Canada has also missed a cycle of immigration because of COVID-19, he adds.
“Hopefully, immigration will start to come back, and I think a lot of those vacancies will start to dry up again,” Mr. Wong says.
Booming real estate market reaches rural N.S. – CBC.ca
Realtors in rural Nova Scotia are adjusting quickly to a new way of selling houses as buyers from places like Ontario and B.C. snap up properties without seeing them in person.
Christopher Snarby, the co-owner of Exit Realty Inter Lake, sells properties from Chester to Queens County and estimates he’s sold 12-15 of them sight unseen since May.
“People have been desperate and they can’t get here to see it, and they know things are moving quickly so they just kind of have to make a choice,” Snarby told CBC’s Information Morning on Monday.
“And not everybody’s comfortable with it, but certainly I’ve had a number that have been.”
He admits selling a property virtually can be a challenge.
“It’s hard to describe a smell or feel of a house, but it really does become our responsibility to try to convey as much information as we can,” Snarby said.
October was a record-breaking month for property sales across the province with inventory low and prices continuing to soar, according to the Nova Scotia Association of Realtors.
Bobbi Maxwell said half of her buyers right now are from outside the province and won’t see their houses in person until they arrive. Most are middle-aged people who can work from home and are looking for a place to retire at some point.
“We’re starting to see more people … migrate this way because they want the solitude, the peace, the quiet, the safety and the beauty of the beaches,” said Maxwell, a realtor with Viewpoint Realty Services who sells properties around Barrington and Clyde River in Shelburne County.
“We’re not as hot as the metro [market], but it’s definitely been one crazy market for us as well.”
Record October across N.S.
The Nova Scotia Association of Realtors compiled data for the month of October that shows 1,427 units were sold across the province, up more than 30 per cent from October 2019.
The average sale price was a record $304,590, rising just over 21 per cent from the previous October.
In Yarmouth, there were 24 residential sales in October, up 41 per cent from last year and in the Annapolis Valley, 203 properties were sold, up 30 per cent since last October. The average sale price also went up in both areas last month.
On the South Shore where Snarby works, sales in October were up about 30 per cent from last year and the average residential price was just over $291,000, an increase of 36 per cent over last October.
The booming market is a major win for sellers but can be frustrating for buyers.
“We’re not usually accustomed to that many bidding wars in our area, but now … most properties have gone into at least two or three offers and the time frames are a lot quicker as well,” Snarby said.
In the past, houses would sit on the market for six months to a year and now they’re gone in weeks or days, he added.
Rural internet still a challenge
Even though people are eager to move to Nova Scotia for its friendliness and relative affordability, Snarby and Maxwell said they are routinely asked about internet service.
“It’s really funny because people are more concerned about the internet than they are health-care services,” Maxwell said.
She said newcomers are good news for rural areas like Shelburne County that have struggled with out-migration.
But she said there could be challenges, too.
Many new buyers say they eventually want to build their own homes but finding skilled labour in the area isn’t always easy, she said.
“I think we’re going to have a lot of growing pains because with the demand, we’re very short on tradesmen like plumbers and electricians and carpenters,” Maxwell said.
“I really am hoping that a lot of the people who are moving here from away are bringing in new skills or new motivation to want to … become career oriented or focused and become tradesmen in our area.”
Snarby said some of his clients are selling homes in the $800,000 range in Ontario and buying a property in rural Nova Scotia for around $200,000, leaving a healthy amount for their retirement fund.
“And at the end of the day, if they’re not comfortable with their house or if it’s not quite the right one, they can put it back on the market and there’s a good chance it’ll sell,” Snarby said.
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