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.
We expect to have even more inventory later on this year as we get ready for the completion of PSV 1 and PSV2.
At the same time, we are seeing less amount of listings available for sale. Buildings which are known to have 15-18 listings on average are now averaging around 10 listings for sale.
Average Price Is Up
With overall prices in downtown Mississauga going up by around 4% year over year, we have seen the strongest movement from one bedroom / one+den condos.
To put this into perspective, in the first quarter of 2015 we have only seen 9 sales of one bedroom condos over the $300,000 price point. In the first quarter this year, we have seen this number jump to 23.
However, not all condos went up in price. Units which are not in great shape and need some TLC have a hard time selling even in this hot market. This is why we always recommend freshening up a unit which needs work, before putting it up for sale!
Firm Offers On Condos
We all heard of properties in Toronto receiving many offers and selling over asking price within a few days. Well, now similar trends are appearing on some Mississauga Condos.
In the last week alone we received two firm offers (with no condo status certificate condition) on some of our listings. This is unheard of by many professionals who have been licensed for years!
Positive Cash Flow
Some of our investor clients, who purchased condos a few years back, are now seeing positive cash flow. How is this possible? Rising rent prices and ultra-low interests rates.
We have seen, condos which have been purchased for $230,000-250,000 a few years back to be worth anywhere in the $270,000-300,000 range. Rent prices for some units have gone from $1300 a month to $1650+ a month.
What Does All This Mean?
Buyers – Being pre-approved for a mortgage is more important than ever! Understanding exactly what you can qualify for and how much your monthly carrying costs will be, will help you secure the unit of your choice.
Be sure to work with our Square One condo buying team, as we can ensure you end up getting a good deal on a condo!
Sellers- If you were waiting for the perfect market conditions, the time is now. Are you thinking of cashing in your investment? Or perhaps upgrading to a larger property? This year our team has already helped over 25 people buy or sell condos.
If you are thinking of buying or selling a condo we are ready to help!
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