Seller’s market to prevail in 2020, prices to increase 5%
The Mississauga housing market will lean toward sellers in 2020 across most property types, with the average residential sale price expected to rise by five per cent thanks to increased consumer confidence and historical price appreciation.
The Mississauga housing market experienced steady growth after taking a dip in 2017. Affordability remains a concern for homebuyers with the tightening of inventory and the corresponding upward pressure on pricing. This challenge will continue into 2020.
Thirteen per cent of the new housing starts in the Greater Toronto Area in 2019 took place in Mississauga according to Canada Mortgage and Housing Corp. This construction trend is expected to continue in 2020, bringing some relief to the inventory shortage in the region, and a corresponding moderation in the high single-digit price increases in Mississauga’s condominium sector.
Easy access to Toronto’s downtown core via Mississauga’s main thoroughfares and GO Transit will continue to have an impact on the market. The hottest neighbourhood for Mississauga home sales is the area around Square One, due to the many affordable condo units found here. Lisgar/Churchill Meadows are also in high demand due to the affordable newer homes that require little maintenance. Clarkson is also a popular choice for homebuyers thanks to its relative affordability compared to the surrounding area, as well as easy access to GO Transit and the QEW.
First-time homebuyers are expected to propel the Mississauga housing market in 2020, attracted to the area by the high concentration of relatively affordable condos found here.
From a national perspective, RE/MAX anticipates a leveling out of the highs and lows that characterized the Canadian housing market in 2019, particularly in Vancouver and Toronto, as we move into 2020. Healthy price increases are expected, with an estimated 3.7-per-cent increase in the average national residential sales price, according to the RE/MAX 2020 Housing Market Outlook Report.
Most individual markets surveyed across Canada experienced moderate price increases year-over-year from 2018 to 2019. However, some regions in Ontario continue to experience higher-than-normal gains, including London (+10.7 per cent), Windsor (+11 per cent), Ottawa (+11.7 per cent) and Niagara (+12.9 per cent).
“Southern Ontario is witnessing some incredibly strong price appreciation, with many regions seeing double-digit gains,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada. “Thanks to the region’s resilient economy, staggering population growth and relentless development, the 2020 market looks very optimistic.”