Looking at the 3rd quarter luxury real estate market report for South Mississauga ON, it is evident that there has been an increase in the average market price for single-family luxury homes and a decrease for luxury condominiums. While the average price of luxury single-family homes increased about 0.25% from the last quarter ($2,647,783 to $2,654,135), the average price for luxury condominiums decreased a total of 2.7% (from $1,202,356 to $1,169,722).
Another market increase we are seeing over this 3rd quarter is an increase of overall active listings. Where there were only 13 active listings at the end of the last quarter, there are 21 active listings at the end of the 3rd quarter. A total increase of 61.4%! Fueled by local buyers looking to upgrade their living situations, luxury homes can see an average of 43 days on the market, and 34 days for luxury condominiums. Though the record for the highest sale price was recorded in 2017 for a $10,000,000 South Mississauga home, 2019’s highest luxury home sale in the area totaled $7,400,000.
Mississauga is currently home to over 90,000 diverse businesses creating the core of their strong economy. Attracting new businesses and entrepreneurship will be a leading factor sustaining economic growth for the area. As outlined in the new Economic Development Strategy for 2020-2025, Mississauga is putting a focus on supporting businesses and delivering infrastructure to help attract and support even more economic diversity. Also following the United Nations Sustainable Development Goals, Mississauga is committed to a sustainable economic agenda.
Other factors affecting Mississauga’s housing market and many others across Canada are linked to new rules for mortgages and first time home buyers put in place by the government. The new “stress test” for uninsured mortgages slowed the sales of homes across the nation after it was put in place on January 1st of 2018. Following this new qualifier, the Bank of Canada lowered its rate for their mortgage stress test for the first time in three years to 5.19% needed for a downpayment. This change should increase buying power and allow mortgage borrowers to afford 1.4% more! Lastly, the edition on a $1.25 billion home-buyer incentive program with the opportunity to benefit thousands of Canadian families offering a 25-year incentive for up to 5% for buying an existing home and 10% for a new home.
Whether you’re buying or selling, the global marketplace for luxury real estate is always changing. We have analyzed the latest reports in luxury real estate to keep you up to date on current market trends in your area. This week’s Luxury Market Update for Mississauga, Ontario has been provided by The Peter Papousek Team.
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