It always seems especially at the beginning of any given year people are curious to know how the real estate market has done in the previous year, and what experts are predicting will happen in the future. Over the years I have published many blogs, giving my insight on this topic.
How did the Mississauga Condo Market do in 2014?
No condo market crash.
Many of the media and newspapers who were calling for a major condo market price correction are puzzled and don’t understand why the condo prices have not fallen. 3 reasons – a) Low interest rates (Under 3% for a 5 year locked period) b) Strong immigration population (nearly 100,000 new immigrants come to the Greater Toronto Area every year) and c) Detached Homes are unaffordable for many (average price in November 2014 for a detached house in Mississauga was $672,000 and in Toronto it was a whopping $935,000!)
Pre-construction condo sales have slowed down.
No condo builders have launched any new projects in 2014 in downtown Mississauga. This trend was prevalent not only in Mississauga, but the rest of the GTA. Since many investors only buy pre-built condominiums in the first stages before the construction starts, most of the pre-construction sales this year consisted of end users. This group included first time home buyers, downsizers and people moving from abroad.
Rent Prices Went Up.
Many tenants were in for a nasty surprise when they found out how much prices have gone up. To put this into perspective, 3 years ago it was possible to get a newer one bedroom + den condo, near Square One for $1300. This year you were lucky to get the same unit for $1450. That’s like a 4% increase a year!
How will the Mississauga Condo Market do in 2015?
New condo projects.
Amacon (builders of PSV and Residence) are set to release a new condo project this spring in the Park Side Village area near Square One. Pinnacle (Builders of Grand Park and Pinnacle Uptown)are also aiming to release a new block in the Pinnacle Uptown community of condos. These projects have been anticipated by investors given the success of their previous towers. As always we will have Platinum access to both projects and we are encouraging people to start registering even now.
Non-renovated units might be a hard sell.
Buyer expectations are up. Stainless steel and laminate floors are perceived to be the standard by many condo shoppers in 2015. If you are thinking of selling your condo, and your unit is more than 6 years old, my guess is that it needs a facelift. Contact us and we will be able to advise you on what specific things need to be addressed before we put it up for sale.
Good units will increase in value and bad units will not.
Buyers are surprised to find out how much prices can vary for similar units from building to building. Over the years certain condo buildings have increased in value more than others. Many dynamics come into play when deciding that value, such as reputation of the condo building (which I believe is most important), number of renters vs owners in the building, the quality of the property management, the building materials etc. (We will cover more on this in a future blog post – stay tuned.)
If you are renting and can afford to buy – do it. Rent prices in 2014 have broken new records and are expected still to increase in 2015. Stop paying your landlord’s mortgage!
When looking at properties for sale, make sure to work with a condo expert. The condo Realtor will be able to source you the best possible units and do it free of charge (as he gets paid by the seller).
Finally, when selling a condo in 2015, you should really know that marketing matters. With over 450+ condo units for sale around Square One at any given time, it is important to make sure that your condo stands out from the rest.
Wishing all readers nothing but the best for 2015!
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