June was definitely a tipping point for Mississauga condos as sales cooled and the market changed direction for the first time recorded in 6 years. It’s turned from a seller’s market over to a buyer’s market, which wasn’t really a surprise to see. This will, however, definitely drive some buyers out of the woodwork since more deals will be available as long as you know how to search for them.
Condo sales in the Toronto area decreased 20% compared to last year’s figures for June in the 905 regions. Sales for the City of Toronto dipped 18% in June. Although it’s too early to really speculate with the June numbers, condo prices could start to come down as early as this fall.
While bidding wars are still going on there are condos that are staying on the market for longer lengths of time. Things generally cool down during the summer months so it’s hard to say whether this is a long-term trend or whether it’s just a short-term summer cool-off.
Sales for condos were strong at the beginning of the year but have dipped significantly since March. A few projects have been put on hold by developers but the big project for the waterfront area in Toronto is still moving ahead. This tower can hold 795 condo units and will be 75 stories high.
Jim Ritchie, vice president for Tridel, the developing company for the project, says that the development is still a go but has been slightly delayed due to approval and design issues. The tower is expected to open at the end of September.
Here in Mississauga condominiums showed a year-over-year price increase of 7.8% in June with the average price of a condo resting at $289,000. The average cost for a bungalow went up 7% to bring the average cost up to $465,000, while the average two-story homes are selling for $441,825, up 7.5% from last year’s figures.
Even though listings have gone up there is still a heavy demand for Mississauga homes and multiple offers are appearing for homes in good condition that are being listed at reasonable prices.
It will be interesting to see how the summer plays out for real estate in Mississauga and the Toronto area with the new mortgage rules just going into effect on July 9, the cooling effects of summer turning on and the trend towards a buyer’s market finally tipping the scales.