Posted on: 06-03-09 12:01:18
Mississauga Condo market update
Rogers TV http://www.rogerstv.com/option.asp?rid=51&lid=16&tid=27210 First Local recently covered a special edition on Mississauga’s condo market. Their reporter met me and asked me about my views on the market. Below is what I had to say about the resale and new builder’s condos in Mississauga downtown. Not everything was telecast due to time constrain:
Resale condo market:
Mississauga condo market in Downtown Mississauga is doing well looking at the Toronto Real Estate Board (TREB) data below. In the past five years resale numbers in W15 show that almost 1200, 1300, 1400 and 1422 condo apartments were sold in the year 2005, 2006, 2007 and 2008 respectively.
The sold to actve ratios are back to 2005 and 2006 level.
The active to sold listings ratio may have been down compared to last year, but the prices have not dropped. This shows strength in the Mississauga real estate market. Mississauga condo prices have appreciated almost 16% in past four years. Mississauga is the no.1 destination of choice of new immigrants and professionals. Mississauga is a knowledge based economy and many educated professionals make Mississauga their home. Many first time buyers who cannot afford Toronto real estate prices and or buyers who do not want to pay more in Toronto’s new land transfer tax also flock to Mississauga.
Mississauga has some great plans for its Downtown. Revitalization of public spaces in and around downtown Mississauga, with particular focus on the new parks and public spaces in the City Centre area is on its way. The City is spending millions of dollars to revitalize the City Centre area. The place is poised to become vibrant in the coming years with many activities that will take place in the vicinity- road shows, multicultural events, farmer markets, piazzas, coffee shops, GO transit terminal expansion, bus rapid transit, cinema halls, parks, walking trails etc.
This will further add value to the condos in the Square One Area.
New builder condos
The current economic downturn has certainly taken a toll on new builder condos sales market in Downtown Mississauga. As per the RealNet’s new home market data, less than five new builder condos were sold in Jan 09 out of approx. 770 in W15 district. One of the reasons can be attributed to the future pricing model of these units. Builder’s price of pre-construction condo is always more than the current market price of similar condo in the resale market. With the plunging housing numbers and a gloomy economic outlook, buyers are finding better value in resale condos.
Some builders are becoming smarter and offering more incentives to the buyers. In my opinion, unless the builders don’t entice buyers with better pricing and incentives they may find it hard to sell many condos in this market.
Full report: http://condopundit.com/wordpress/?p=99
-----------------------------------------------------------------
Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/
I watched First Local as it was telecasted and also read Amit's complete interview of factual condo market supported by figures. It is amazing that the interview was edited to air only the comments where it gave an impression that the RE Condo market in in a tail-spin. Guess, First Local is competeing with other media to see who can be more negative than the other. I wonder what is so "juicy" about the any negative, and/or nad news that the media only chooses to air these "only".
-----------------------------------------------------------------
Rajeev Narula, Broker, REALTOR®
ACE TEAM REALTY INC., Brokerage
10 Kingsbridge Garden Circle, Suite 704
(Opp Square One - HWY10/403)
Mississauga, ON L5R 3K6
Bus: 1-888-355-3155 Ext. 300
Fax: 1-888-443-3155
Email:
Web: http://www.RAJEEV.ca" rel="nofollow">LINK
Amit & Rajiv
How is the real estate market in Mississauga right now? Are sellers getting the right price for their condo townhouses? What i mean is, would someone who bought a house 2 years back go into a loss if he sells now?
Looking to move to a condo..
Quote:
Originally posted by desiskywalker
Amit & Rajiv
How is the real estate market in Mississauga right now? Are sellers getting the right price for their condo townhouses? What i mean is, would someone who bought a house 2 years back go into a loss if he sells now?
Looking to move to a condo..
It depends upon what price you bought your condo townhouse. Your price will also take into the consideration what value (upgrades etc.) additions have been done to your property.
Sellers with reasonable expectation of price are definitely getting the right price.
Mississauga's condo townhouse market is doing just fine. Well priced and better marketed properties always sell fast.
Your buying cost was almost 2% and your selling cost may not be less than 5%. Asking seven percent price appreciation is like breaking even.
Since you will be down sizing, you might be porting you existing mortgage. Doing so will save you penanlty to break the existing mortgage.
Regards,
-----------------------------------------------------------------
Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/
Current market conditions are more favourable for "buying up". This said, downsizing will be attractive for someone who bought the property years ago and/or located in the prime areas that have not experienced much change in price. In Mississauga, overall average price drop has been in around 5%. However, one cannot use this as a yardstick as some areas have lost more than others.
Most condos are located in the heart of the city near Square One; therefore it is easier to observe market swings there. The resale market for condos has lost steam but is still chugging along and prices are stable. New condo projects are suffering though since investors and speculators are out of buying spree. The very fact that the builders are offering unheard of incentives to REALTORS® and buyers is an indication of how much hand they had in the high prices of the Condos.
End of the day, sellers who have adjusted to the today's reality are still benefiting by the way of faster sale. In the last couple of months I have taken a few clients around in Milton and whenever we came across a good that was property priced reasonably, it was sold in less than 2 weeks and very close to asking price and with multiple offers (2 offers each, happened thrice).
Today's market is still a blessing for some. Recently, one of my colleagues was contacted by a Buyer couple who was so thrilled that the interest rates and prices are record low. They were excited that they were now able to afford to "own" a home.
-----------------------------------------------------------------
Rajeev Narula, Broker, REALTOR®
ACE TEAM REALTY INC., Brokerage
10 Kingsbridge Garden Circle, Suite 704
(Opp Square One - HWY10/403)
Mississauga, ON L5R 3K6
Bus: 1-888-355-3155 Ext. 300
Fax: 1-888-443-3155
Email:
Web: http://www.RAJEEV.ca" rel="nofollow">LINK
Deleted as same post got repeated twice ...though don't know how..
-----------------------------------------------------------------
Rajeev Narula, Broker, REALTOR®
ACE TEAM REALTY INC., Brokerage
10 Kingsbridge Garden Circle, Suite 704
(Opp Square One - HWY10/403)
Mississauga, ON L5R 3K6
Bus: 1-888-355-3155 Ext. 300
Fax: 1-888-443-3155
Email:
Web: http://www.RAJEEV.ca" rel="nofollow">LINK
Thanks Amit & Rajeev.
