As we are well into the 3rd quarter of 2012, I felt it would be appropriate to give our readers a real estate market update for Mississauga. There is a lot of “buzz” over the internet and different media outlets portraying various real estate predictions, overwhelming the average consumer. This makes it difficult to choose a side, as everyone seems to have a different opinion on this topic.
In this blog post, I will share my interpretation of the latest Market Watch for July 2012 and what implications it may have for Mississauga condos.
GTA As A Whole – Despite what media outlets say, real estate prices in the GTA (Greater Toronto Area) were actually up by 4% from July 2011. The average price is now at $476,947. The number of real estate transactions has declined by 1.5%, while the average property took 26 days to sell (the same amount of time as last year). I would argue that the 4% incline in prices is still a solid indicator that we are in a healthy real estate market.
Number Of Square One Condo Sales – The number of transactions in the 905 area code (which includes Mississauga) has actually dropped by 2% compared to (the same time) last year. This number is no surprise to me, as I indicated in the beginning of this year, that we are in a seller’s market. Well priced condos around Square One are known to sell under a week. However, as we are now past the traditional “peak real estate season” of the year, I do see this trend shifting and being more balanced out and even possibly favoring buyers.
Average Selling Price Of A Square One Condo – The average selling price of a condo in the 905 area code was up by 1% in July 2012 from July 2011. This modest incline was lower than some of the previous years on record, where we have seen 4-7% price jumps. However, the Mississauga condo market continues to outperform Toronto’s condo market, which experienced a 1% decline in prices during the same time. I do see Square One condos appreciating 1-3% per year as we approach 2013.
Conclusion – No one can predict for certain what is going to happen, but based on these statistics it appears to me that we are in healthy shape. Prices are modestly going up (almost in line with inflation which is rated between 2-3%) and now the market appears to be balanced between buyers and sellers.
As a Realtor who is passionate about condos, (I follow 25+ national and international condo blogs) let me reassure you that the market conditions are very sour in most places outside of the GTA. Condo prices in some cities in the US have dropped by 40% since the 2008 recession. We here in Canada, and more specifically Mississauga, are fortunate enough to have tight lending policies and a strong economy which prevents a US style real estate market crash.
You can follow any responses to this entry through the RSS 2.0 feed.