I remember going to a particular offer presentation sometime last January. I was wearing my best suit and had the offer in hand; I was ready to make my presentation. I meet briefly with the seller’s real estate agent, he greets me and then softly apologies that there would be a fifth agent who will also be making an offer that night. Little did I know at that time how often I would find myself in a multiple bid situations. This is how I remember the first half of 2012. Buyers were in a frenzy to beat rising interest rates and because it was the winter season inventory was small as sellers prefer to wait until the spring to list. I couldn't go to make an offer without at least one other person bidding against me. It got so bad that sometimes the day a house was put on sale it would have multiple offers by noon.
"The challenge has been a lack of inventory. Many listings have attracted multiple interested buyers. Strong competition has led to annual rates of price growth well above the long-term average.” Toronto Real Estate Board President Richard Silver.
If buyers were spurred on by low mortgage rates, they were certainly much more cautious in the second half of the year to buy Mississauga real estate. The federal government was hinting of increasing the lending rate early in 2012, but instead decided to leave it alone for the time being. Instead, they made changes to the mortgage qualifying rules effectively making it more challenging to qualify. Still, Mississauga real estatesales were still strong through to September. No there were not many multiple offer situations as in the first half of the year, but buyers were still paying 97% of the asking price on average and prices were still going up. The new mortgage rules in combination of the unfair land transfer tax in Toronto helped to channel more clients to buy real estate in Mississauga. Once again, strong demand caused an upwards pressure on prices to continue.
"While sales have been lower due to stricter mortgage lending guidelines, we continue to see substantial competition between buyers. The months of inventory trend remains low from a historic perspective, which explains the strong price increases we are experiencing,” said Toronto Real Estate Board (TREB) President Ann Hannah.
The last part of the year in my experience was answering buyers question if the market was going to drop? Despite restrictive mortgage controls and the general sentiment of buyersthe restate market will see a price drop; numbers for the final quarter are now in showing increase in prices from 2011. The month of December alone saw price increase over the previous year by 3% despite number of sales being lower. Overall, prices are up by 8% with an average price of $456,027 for all types of residential properties. 2012 will go done as a strong year for Mississauga real estate in terms of sales. There were 9,805 total sales worth a dollar value of $4,471,339,897.
By Todd Lee