Many speculators who bought homes with the intention of making a quick buck in Mississauga are worried as the Toronto Real Estate Board (TREB) data revealed a 22.6 per cent decline in total sales over the past year.
Over the first five months of the year, Mississauga’s real estate market saw 3,279 total sales. That represented a 29.3 per cent drop compared to 4,641 through the first five months of 2017, and the lowest total in more than six years.
In Brampton things have been more or less the same as in Mississauga. Sales in the first five months of 2017 were 4,465, marking a 30.4 per cent drop in Brampton sales compared to this point in 2018.
Year-over-year for the month of May alone, Brampton’s market is down 25.5 per cent with just 684 sales, compared to 918 in May 2017.
On the flip side, the average sale price for all types of dwellings in Mississauga has rebounded marginally from its January 2018 low of $631,372. In May, the average home sold for $726,897, marking a 15.1 per cent increase since the beginning of the year.
However, that’s still 9 per cent lower than the market’s peak average of $798,670 reached in March 2017.
What seems to be happening is that reality has set in and a lot of people have quickly gotten rid of their get-rich-quick-through-real-estate approach to investment. Those who intended to move to bigger and better dwellings are now opting to renovate instead and wait until there is more positive news around the economy and real estate investment. Speculators are more cautious and those with second and third properties are continuing to rent until the market rebounds and they can then put their properties on the market. Such tension is keeping a lot of people up at night. – CINEWS