What’s fueling soaring Mississauga House Prices? I experience it everyday in my work as a licensed Real Estate Broker. The incentive of low interest rates motivates my clients to buy homes. However that is only part of the reason for increases in home sales and record low house inventory! Finally home prices are up 20% average in Mississauga last year alone. A staggering increase reported by the Toronto Real Estate board. What is causing this overheated housing market? I put on my Sherlock Holmes thinking cap resulting in discovering 8 things!
Who are we? – The City of Mississauga is one of the top places on the planet earth to live. Furthermore neighbours around Lake Ontario in communities of Halton, Wentworth, Niagara and Toronto also live and work in one of the greatest places on earth! Together it’s known as the Greater Golden Horseshoe region resulting in a population over 13.5 Million people. Hence it accounts for over 25% of Canada’s Gross Domestic Product(GDP). Our’s is a knowledge based economy with well educated workers in addition to social and economic diversity within close proximity to major US markets.
What’s fueling soaring Mississauga house prices? – 8 Things!
1. Lack of Land to Build
Fewer new homes are being built resulting in lower inventories. The greenbelt is surrounding Mississauga and the entire
Golden Horseshoe thereby enclosing our cities. The Niagara Escarpment and Oakridge Moraine are green areas protected by the Ontario Places to Grow Act . Higher density building is creating Lack of land to Build more affordable housing, including semi detached ,town homes and condo apartment complexes. Certainly home buyers budgets are being stretched to purchase conventional detached family homes throughout the Golden Horseshoe region.
2. Mississauga is #1 Destination for New Immigration.
Firstly, record numbers of Permanent Resident newcomers are arriving resulting in many purchasing a home for shelter. Furthermore Canada has targets of 450,000 settlers in 2022, hence a record since 1913. The #1 best places to settle are the regions of Halton, Peel and Toronto. Days gone by , Pier 21 in Halifax was the “start of a new life” for immigrants arriving by sea. Now days the new port of entry to Canada is Pearson International Airport. It follows many stay close by to where they land which is situated right on our doorstep in Mississauga. Furthermore Federal Immigration programs such as “express entry” bring highly skilled and well paid workers to Mississauga. (*Stats Can) Royal LePage reports that 75% of newcomers arrive with savings that allow them to purchase a home.
3. Safe Harbour for families and Finances.
Canada’s banking system is ranked “Soundest in the World”, by the World Economic Forum. Therefore achieving the level eight straight years in a row is another good reason for investment in Canada. Finally the UN ranked Canada an enviable top 10 for Quality of Life around the world. Consequently this makes Mississauga an ideal place to move a family and buy investment homes and homes to live in.
4. Soft Canadian dollar
While the Loonie is off to a good start in 2022, helped in part by higher commodity prices and recovering energy sector. The last few years a soft Canadian dollar has made Mississauga real estate a great deal to buyers from other countries. They continue buying homes as investment property and it’s a bargain using stronger foreign currencies.
5. Demographic demand for housing
Baby Boomers up to recently have not been moving. Fifty-two per cent of boomer homeowners said they would prefer to renovate their existing home rather than purchase another. This according to the July 2021 Royal LePage Boomers survey. While Generation X are moving up and since Millennials are your first time Buyers. Most likely to down size are the Silent Generation. Therefore the largest chunk of home inventory is occupied by the Baby Boomers and they are a long ways off from putting their homes on the market. (*CREA Insights) By the same token, housing supply across Canada has not kept up with population growth. Canada, overall, would need 1.8 million more dwellings to have the same number of homes per capita as the rest of the G7. *Scotia Bank
6. Attractive and affordable Post Secondary education.
Its estimated over 330,000 International students reside in Canada with over 75% residing in Ontario. The result is many International students buy homes for investment. Hence saving capital gains taxes. Consequently more than half of those studying from abroad apply for permanent Residency after graduation. Finally the City of Mississauga has top Universities and Colleges located within easy commuting distance via transit. University of Toronto Mississauga and Sheridan College Mississauga.
7. Migration to Mississauga
Firstly home buyers are moving to Mississauga from Toronto to save the added Toronto Land Transfer Tax (TLTT) and buy more afford homes. Moreover, Alberta workers in search of employment due to slumping oil prices are heading to Ontario. Where job creation and economic growth is #1 in Canada. Resulting in more demand for housing in Mississauga.
8. Investors buying residential homes and renting them out!
That make sense from an investment point of view. Investors many are ordinary home owners. They take out equity from their primary residences to buy a second or third home for investment. The rental income is tax delectable so they can right off the expenses against rental income and have someone else pay down the mortgage, further benefiting from house price increases.
Finally the US credit crisis in 2008 resulted in precarious banking systems around the world. Resulting in long term Ultra low interest rates. Furthermore U.S. political election turmoil continues.
In conclusion, Mississauga house prices may very well continue to climb higher. Families here are experiencing a chronic lack of housing supply. The entire Golden Horseshoe region attracts new families to settle here. Because its one of the best places on Planet Earth to live. Newcomers buy homes and invest finances more than ever before in our country’s history. By contrast our region is constrained by protected Greenbelt resulting in lack of land to build new homes.
The average price of a semi-detached in Mississauga today is over $1,000,000. That’s a whopping increase of 20% over the last year. Consequently first time home buyers, primarily the Millennials budgets are stretched from escalating house prices.
While Canadian Interest rates maybe on rise soon as reported recently by Bank of Canada Governor Tiff Macklem . The likely outcome is more increases in Mississauga home sales because its the best place to put your money. It will continue. Historically home ownership has been a good investment.
Certainly while our governments grapple with fiscal policy, our lives continue here around Lake Ontario. Consequently over time it’s a series of things that drive demand for housing. The Mississauga community is a hot commodity. Therefore house prices will continue to climb. So know you know my thoughts on what’s fueling soaring Mississauga house prices . That’s- 8 Things! How’s that Sherlock Holmes?
What’s Fueling Soaring Mississauga House Prices
Scott Brubacher Real Estate Broker – Royal LePage Meadowtowne Realty Brokerage
Special thanks to Alex Ocsai and Gloria Riddall broker owners at Royal LePage Meadowtowne Realty Brokerage for insightful inputs to this opinion article.
If you are anyone you know has Real Estate questions or need Real Estate Information, contact me. I’m standing by to help! firstname.lastname@example.org
See also the Pros and Cons of living in Mississauga
6948 Financial Drive Mississauga Ontario
Mississauga Homes daily reports on Mississauga Homes for sale. This includes Erin Mills, Streetsville, Meadowvale, Lisgar, Churchill Meadows, East Credit, Creditview, and Meadowvale Village.