The GTA real estate market has been surging since early 2020. Month after month, record numbers of homes are being sold across the metropolitan area at record-setting prices. In particular, the Mississauga housing market continued to burn hot as summer came to a close.
Sitting just east of the city of Toronto, Mississauga is one of the largest cities in Ontario. A part of the Peel Region, Mississauga is home to more than 800,000 residents – a number that is steadily rising as many Torontonians leave the urban centre and migrate outward in search of greater affordability. The large, dynamic city has regularly attracted those who wish to be conveniently close to Downtown Toronto, but still far enough away to not get caught up in the traffic and limited housing options.
Pandemic-related lifestyle shifts have been a big contributor to the surge of demand for housing in Mississauga. Not only is the city as close to Toronto as it gets, but it also promises homes with more living space, more green space, and (slightly) less expensive housing options. With the Mississauga housing market contributing to the broader affordability crisis in Canadian real estate, many are watching this local market closely for signs of cooling as we dip into the cooler months ahead.
Sales in the Mississauga Real Estate Market Staying Strong
Based on averages, Mississauga experienced a strong August in terms of unit sales. With the MLS System of the Mississauga Real Estate Board reporting 818 unit sales during the month of August, unit sales were 5.1% above the five-year average for the month. While year-over-year sales were down 13.9% compared to August 2020, year-to-date sales held strong. From January through August 2021, 8,163 units were sold. This is a notable 56.1% gain over the same eight-month period in 2020. Regarding the slight decline in home sales for the time of year, Mike Ursini, President of the Mississauga Real Estate Board, states, “Home sales may have declined from last year’s very strong levels but still managed to post an average showing for this time of year.”
While sales have slightly decreased, an increase in demand has led to yet another price surge for the large city. The MLS Home Price Index (HPI) composite benchmark price for the Mississauga market at the end of August 2021 was a whopping $1,110,700. The increase in demand has surged the median price by 20.2% compared to August 2020, and can be largely attributed to the substantial decrease in new listings. Mike Ursini adds that while home sales maintained about average levels, “the same cannot be said for new listings, which have fallen well below the average for August. With sales activity holding up fairly well and new supply underwhelming, it’s no surprise that overall inventories continue to plummet to new record lows. With such a tight market and so little available in the way of listings, we are continuing to see strong double-digit growth in benchmark prices.”
The benchmark price for a single-family home in Mississauga increased by 23.2% year-over-year when comparing August 2020 to 2021, totalling $1,346,100. Prices of townhouses/row units also increased during the same period by 15.6% to $855,800, and the benchmark apartment price saw a gain of 15.8% since last August coming in at $622,200.
Oddly enough, even though the surge in average pricing for the month of August outpaced the decline in unit sales in terms of percentage value, it was not enough to offset one another as the sales volume decreased. In fact, the dollar volume of homes sold during the month decreased 9.8% compared to August 2020, totalling $787.5 million.
The lack of new listings is only tightening this red-hot market, decreasing its accessibility for hopeful homebuyers. When comparing August 2021 to 2020, the number of new listings drastically decreased by 42% year-over-year to just 981 new units hitting the market in August 2021. This is the lowest number of new listings on the market for the month of August in over two decades. In addition, new listings were 20.2% and 25.2% below the five-year and 10-year averages, respectively.
Looking Ahead at Mississauga Real Estate
With cooler months just around the corner, expect that the Mississauga real estate market will remain tight. Sales are anticipated to remain relatively stable. However, in order for prices in the urban centre to come down a little, more residential units will need to be added to the market.
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