COVID-19 Real Estate Market Update April 29 – May 5, 2020
As always, in this post we are going to give you an update for the Mississauga Real Estate Market. However, in this article I want to touch on the topic, have we hit the bottom?
Below is your real estate update for Mississauga for the week of April 22 – 28, 2020. The data has been based on MLS sales over the past week.
Mississauga Real Estate Market Update
Continuing the trend for last week, sales and new listings in Mississauga continue to remain extremely low when compared to the same time last year. Less homes for sale in Mississauga and less buyers was the story of last week.
Below are the number for ALL properties in the city of Mississauga, comparing the week of April 28 – May 5, 2020 versus the same time period in 2019.
- Listings were down 68% Year over year
- Sales were down 72% Year over year
The end of April and the beginning of May is historically the start of the busiest season in residential real estate. As long as we remain in a state of emergency, sales will continue to remain well below average.
Home Prices
This is where things get a little more tricky and it’s not simply comparing average selling prices year over year. To get a better idea of what’s going on, you need to compare what has changed over the past month in real estate. All figures below are based on the sale of semi detached homes in Mississauga, from 600k to 900k. The numbers compare April 29 – May 5 2020, to the first week of March 2020.
- Prices are down approximately 4.8%
- This is an improvement over the past few weeks where prices were down in the 8-9% range
- Average days on market for homes that sold was 21 days
- Average sold to ask ratio was 99%
Normally in a market downturn where prices drop, you see the absorption rate increase, meaning there are way more homes on the market and the time it takes to sell goes way up. However we are still seeing very low levels of homes for sale in the semi detached and town house segments.
Are all Housing and Condo Types Being Affected the Same?
Looking at the Toronto Real Estate Boards Market Watch Report for April 2020, there are some interesting trends developing in the real estate sector that show that price point is playing an important part in how fast homes are selling.
Sales Versus Active Inventory in Mississauga
Sales versus Active Inventory in Mississauga by property type – as of the end of April 2020.
How Long Will it Take to Sell the Inventory of Houses in Mississauga?
From this chart we can see that detached houses and condos are seeing the largest build up of inventory. Semi detached and town houses still have low levels of homes available for sale.
Month’s of Inventory in Mississauga by property type – as of the end of April 2020.
This chart shows both condos and detached houses were in a balanced market for the month of April. The other types of homes in Mississauga still show short levels of supply. Absorption rate is a good indicator of future market performance.
Does Price Point Matter?
It appears that sales of luxury homes have slowed the most.
This chart shows that the luxury market experiencing a buyers market and if this trend continues will put downward pressure on prices. Homes under 1.5M are still in Seller’s Market territory. If you are a luxury buyer, it’s a good time to get a deal.
Condos in Mississauga
Condos have also shown an increase in inventory. While not in a “buyer’s market”, there could be an opportunity for a first time home buyer or investor.
Month’s of Inventory for Condo’s in Mississauga broken down by bedrooms. April 2020
Final Words on the COVD-19 Real Estate Market
As with any downturn, the Corona Virus has caused a slowdown in the Toronto Real Estate Market (which includes Mississauga). While no one knows if this will be short downturn or a longer one, looking at the facts is the most logical way to try and understand what’s going on.
Below is a video going over the last 2 market downturns that might shed some light on the subject.
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Stay safe!!
