Market Statistics

Eric Skicki

Is Mississauga Overpriced?

Written by Eric Skicki Tuesday, June 18th, 2019
  • Then Vs Now.

    The first time that I heard this question, believe it or not, was back in 2012 when I started focusing on Square One condos and Pre-construction condos in the Square One Area. To put into perspective, the resale market for a 1 bedroom condo stood at around the 230k mark then, whereas a similar unit pre-construction was selling for about 250k.

    At that time the project that was selling pre-construction was Crystal Towers (55 and 75 Eglinton Ave West) from Pinnacle International. Buyers kept asking me at that time if I thought the market would crash or if the condos are overpriced. Looking back on those prices now, we can note that they were a great investment. Crystal 2 bedroom units were selling as low as 330k and as high as 360k.

    The 2nd question that I used to get asked and I still keep hearing is if the pre-construction market is overpriced.

    If you note that Crystal was selling between 330k and 360k, then I want to let you know how much the resale market was selling a 2 bedroom for. In an older building in Square One such as Tucana, you could find a 2 bedroom unit for around 210k. This, of course, is a huge price difference. But we need to keep in mind that Tucana was built in 2000 or earlier. If we look onto a building that was completed about a year or so when Crystal Towers started selling we see that the price difference really is not that huge. A much-desired building such as Onyx (223 Webb Dr) was selling a 2 bedroom for around 340k and was built around 2011.

    Fast forward to 2019, I am still being asked that same question. This time, I would like to look at the resale market, to clearly show how much prices have gone up. Currently, a 2 bedroom unit at Tucana sits at around the 430k range depending on how much renos were done to the unit and a 2 bedroom at Onyx goes for around 500k, depending on the size and upgrades in the unit. Clearly, units at Tucana have really gone up a lot in price, but that is because all 2 bedrooms are above the 400 and 500k mark now. Remember those 2 bedroom units that some of you invested in at Crystal, 55 and 75 Eglinton, well they are now worth at around 530k. This just shows that those that have purchased units pre-construction have made money on their units and that the price difference between the newer resale units and the project that was to be completed down the line, was at a similar price range.

    If we look at the project Perla that is in the same community as Crystal and Amber, we will note that a 2 bedroom is going for around 600k. Now, keep in mind that Crystal is already a 5-year-old building and Amber is already over a year old.

    What Does This All Mean?

    Year over year, the condo prices in Square One have seen a healthy increase. I don’t foresee any slowing down. Currently, pre-construction units are sold out as soon as the Platinum phase launches, and the only time there are leftover units is if someone returns a unit for whatever reason. The resale market is still moving units within days, and some units are still seeing multiple offers.

    To answer the real question, if Mississauga is overpriced, it depends what you are comparing it to. If you are looking onto our neighbour, Toronto, and you compare those prices to Mississauga, then no, Mississauga is still considered affordable. If you look outside of larger cities, then yes, Mississauga does seem overpriced. Mississauga has gone up in price, but so has the rest of the GTA. Therefore, it is only normal that condo prices in downtown Mississauga go up in price as well.

    If you are looking to sell your Mississauga condo please contact me here.

    If you are interested in current pre-construction projects and inventory, please contact me here.

  • This entry was posted on Tuesday, June 18th, 2019 and is filed under ALL Articles, Articles for Buyers, Articles for Sellers, Market Statistics. Tags: , , ,

Eric Skicki

Mississauga Condo Market in 2018.

Written by Eric Skicki Sunday, January 14th, 2018
  •  

    2017 was an interesting year in GTA real estate to say the least. We covered in an earlier blog how home prices between January to April skyrocketed by 10-15%. After the April 20th new mortgage rule announcement the market seemed to have take a turn. Here is what happened since then.

     

    Resale Houses

    Depending on the area, the number of homes for sale at any given time went double or even triple what they were earlier in the year. Prices have taken a dip also. The biggest change was experienced by homes priced over the $1.5m mark, dropping in some cases as much as 20%.

     

    Pre-Construction Houses

    Over the past few months, I visited many presentation centers for new homes and it’s clear that new homes are not selling like they used to. Big builders such as Mattamy Homes, got accustomed to selling out entire phases over one weekend, and now are barely selling any houses. New townhomes have taken a noticeably less downturn, but are still not moving as fast as before.

     

    Resale Condos

    Condos listed on MLS seemed not to be affected by the new mortgage rules. Regardless of location, size or even sometimes condition, condos which are well priced do not last long on this market. Many first time buyers are surprised to see the low inventory levels. Some of the popular buildings in Mississauga, such as Onyx or Chicago Towers, only have 1-2 available units listed for sale at any given time.

     

    Pre-construction Condos

    If there is any segment of the market that almost benefited from the recent mortgage rule changes, it’s the new condo market. Average PSF (price per square foot) in Toronto went from the mid $600s to the mid $800s+. Which means a small condo with a parking spot in Toronto can cost anywhere between $500-600k. Mississauga has also seen price increases where $600+ PSF is the new normal.

     

    Why is the above happening?

    The answer is simple. Affordability. For the vast majority of buyers, detached homes are simply out of financial reach. Under the new mortgage rules, buyers must qualify for all real estate purchases as if the mortgage interest rate was 5%. This can easily add up to 20% more on your monthly mortgage payments.

    For the same reason, in 2017 and going on into 2018, the mainstream way to invest in residential real estate will remain as condos. Not only do condominiums see better cash flow (than detached homes), and healthier appreciation, but are also much easier to rent.

    What is interesting to note is that, for the past five years or so many “real estate gurus” and media publications, positioned condos as the more “riskier” investment over stand-alone homes. There was a sentiment that condos were overbuilt and overvalued. As we have seen last year, the exact opposite unfolded, and condos turned out to be the winner.

     

    What to do in 2018?

    I still believe that the best long-term real estate investment one can make is a pre-construction condo. Some of our clients who bought in previous phases, such as Grand Park 2, PSV and Crystal, have seen over $100k in price appreciation over the past few years. There is a high demand on the rental market for these condos and they usually get rented within a week or so.

    Regardless if you’re a first-time buyer, a downsizer planning for his/her retirement or an experienced investor, I recommend you reach out to us and we can find you the best condo for your needs. In 2018, we have quite a few launches in Mississauga. So far we announced – Highlight condos, Edge Towers (2nd release) and Avia. Stay tuned for more!

     

  • This entry was posted on Sunday, January 14th, 2018 and is filed under ALL Articles, Market Statistics. Tags: , , , , , ,

Eric Skicki

What’s Going On With The Mississauga Condo Market?

Written by Eric Skicki Tuesday, June 13th, 2017
  •  

    Less than 3 months ago the real estate market in the GTA was in a much different state than it is today.  It was common for condos for sale to get 20+ showings within a few days. During this time, our team managed to sell some condos as high as 120% of asking the price! So why did the Mississauga condo market dip recently?

     

    On April 20th, this all changed when the government of Ontario passed a new law called the Ontario’s Fair Housing Plan. Under this new legislation, 16 new measures were introduced to help more people find affordable housing, increase housing supply and provide a way for the real estate market to balance out a little more.

     

    As a result of the changes, the number of freehold home sales dropped by over 20% in May 2017, as compared to May 2016. Condo sales have only dipped by 6.4%. This might suggest that these new rules had a more meaningful effect on pricier properties, rather than the affordable real estate.

     

    Despite the number of sales being down, the prices for most condos have stabilized compared to what they were last year.

     

    When talking to some of our buyers we noticed a few of them decided to see “how things play out” before buying their next property. On the other hand, some sellers decided to “cash in” on their real estate holdings which have appreciated nicely over the past few years.  This, partly explains the imbalance in the market which has caused the number of transactions to go down. 

     

    Read more…

  • This entry was posted on Tuesday, June 13th, 2017 and is filed under ALL Articles, Market Statistics. Tags: , , ,

Eric Skicki

Mississauga Condo Real Estate Update

Written by Eric Skicki Monday, March 13th, 2017
  •  

    Condo Market Up 10% in 90 days?

     

    Mississauga Condo Market

     

    This may seem almost unbelievable, but it’s true. Some condos in the Square One area have sold for up to 10% more than they did just last November.

    Pretty much every well-advertised condo in today’s market should be going into multiple offers. As a buyer, you can expect to pay up to 10% more than comparable sales last year. It’s not uncommon to see firm offers on condos, without even a condo status certificate condition!

    To give you an idea of how hot the condo market is; last month, we got a listing and within 24 hours we had 43 showings and seven offers. The unit ended up selling over $60,000 more than the same unit last fall.

     

     

    Only a Few Options Left For Pre-construction Condos

     

    If you are a buyer looking to get into the pre-construction market there are not many options. As of April 21st, Pinnacle Grand Park 2, Pinnacle Amber and Block Nine condos are sold out of regular units (non-penthouse) and Grand Mirage is about 90% sold out. (updated April 21st, 2017) 

    For a one bedroom condo, you can expect to pay from the mid $300’s and two bedroom units start at around $475,000+.

    Read more…

  • This entry was posted on Monday, March 13th, 2017 and is filed under ALL Articles, Market Statistics. Tags: , , , ,

Eric Skicki

Canada’s Four New Housing Rules

Written by Eric Skicki Thursday, November 10th, 2016
  • new-mortgage-rules

    As of October 17th, 2016, some Canadians may find it more difficult to obtain a mortgage in order to purchase a home. Below I will discuss the FOUR major changes within the system; who it affects and what this means for the housing market, more specifically, the Mississauga condo market.

     

    Rule 1: Mortgage rate “stress test”

    What is a high-ratio mortgage and who does it impact? The Canadian Government now requires those with less than 20% down payment to purchase mortgage default insurance. Therefore, anyone with less than 20% down payment is considered to have a high-ratio mortgage.

    All high-ratio insured home buyers must now qualify for mortgage insurance at a rate of 4.64%. Though banks offer interest rates at 2.5%, institutions want to ensure borrowers can still make their monthly payments in the event that rates increase. This new rule came into effect on October 17th, 2016.

     

    Read more…

  • This entry was posted on Thursday, November 10th, 2016 and is filed under ALL Articles, Market Statistics. Tags: , , , , ,

Eric Skicki

Will the condo market crash in 2017?

Written by Eric Skicki Tuesday, September 6th, 2016
  • Since the beginning of 2016, we have seen a few new price records being broken in the Square One area. We have seen one bedroom plus den condos cross over $300k, while some two bedrooms are creeping above the $400k mark. While many condo owners are satisfied to see their homes go up in value, the rising prices do raise concerns over a “real estate market bubble“.

    In this blog post, I will outline some of the key factors which continue to propel the market forward, and why I believe a real estate market crash is less likely to happen than many people tend to believe.

    That said; the market can not rise at this pace forever. There will be a tipping point, at which I believe the prices will stabilize for some period of time.

     

    Read more…

  • This entry was posted on Tuesday, September 6th, 2016 and is filed under ALL Articles, Market Statistics.

Eric Skicki

Breaking New Records In Square One

Written by Eric Skicki Thursday, April 14th, 2016
  • missisauga-market

    The first quarter has been a great start to the 2016 real estate market. With home prices once again at all-time highs, buyers found themselves scrambling in multiple offers trying to find the perfect home. Typically this only occurred with freeholds (houses, semi-detached, and townhouses), but for the first time this year, we saw this phenomenon carry out into the condo market.

    The following trends are now happening in downtown Mississauga.

    More Sales / Low Inventory

    The number of condo sales in City Centre in 2016 is up by 30% over the same time period last year.

     

    This spike is mainly the result from a few new condo projects that were completed since 2015. This includes Pinnacle Uptown’s Crystal condos and Mirage.

    We expect to have even more inventory later on this year as we get ready for the completion of PSV 1 and PSV2.

     

    Read more…

  • This entry was posted on Thursday, April 14th, 2016 and is filed under ALL Articles, Market Statistics.

Eric Skicki

8 Things to Know About Mississauga Condos in 2016

Written by Eric Skicki Thursday, January 21st, 2016
  • mississauga-2016-8thingstoknow

     

    Prices Are Going Up

    As we welcome 2016, it’s no surprise that condo prices in Mississauga continue to increase at around 3% per year. The major drivers of this force are freehold homes, which have increased in some places by nearly 60% in the past decade. Condos have become the norm for all first-time home buyers and investors.

    Investors continue to enjoy the low 1.2% rental vacancy rates that Mississauga has to offer.

    First-time-buyers might be surprised to see certain buildings such as City Gate, list one bedroom + dens for around $300k and sell. Similar units 2-3 years ago were selling in the $270’s range.

    Local Buyers Compete Against International Buyers

    One of the key factors driving Mississauga Condo prices up; are international buyers. Although the exact number of foreign and overseas ownership is not available for public, experts estimate this number to be as high as 15-20%. With the falling Canadian dollar (around $0.68 at the time of writing this article), Mississauga real estate looks like a “good buy” for many people abroad.

     

    Read more…

  • This entry was posted on Thursday, January 21st, 2016 and is filed under ALL Articles, Market Statistics.

Eric Skicki

The Falling Canadian Dollar Brings International Condo Buyers

Written by Eric Skicki Tuesday, November 3rd, 2015
  • CANADIAN-DOLLAR

    Exactly 33 months ago the Canadian dollar was at par; even a little higher than the American counterpart. Cross-border shopping was cheap and Canadians took advantage by buying anything from clothing to cars, and even properties down south.

    Since then, the Canadian dollar went down by roughly 25%. What does that mean for us here in Canada hoping to buy real estate?

    Firstly, buying any property outside of Canada automatically costs 25% more than two and a half years ago. Those earning income in Canadian dollars prefer to keep their money in Canada as the conversion rate is too high if they were to invest in the United States.

     

    Read more…

  • This entry was posted on Tuesday, November 3rd, 2015 and is filed under ALL Articles, Market Statistics.

Eric Skicki

What To Expect In 2015 for the Mississauga Condo Market

Written by Eric Skicki Saturday, January 3rd, 2015
  • condo-market-2015-mississauga

    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!)

     

    Read more…

  • This entry was posted on Saturday, January 3rd, 2015 and is filed under ALL Articles, Market Statistics.

Social media & sharing icons powered by UltimatelySocial