Posts tagged with: real estate market

The Mississauga Condo Market Dominated Peel Region Rentals Again.

June 24, 2013 - Updated: April 18, 2014Real Estate Market

    According to the Toronto Real Estate Board, Mississauga condos accounted for 540 of the 566 total transactions in Peel Region for the first 3 months of the year.  The city of Brampton mustered only 25 total leases. Caledon which is not known for condos managed only one lease.

    Of the 540 Mississauga condo rental transactions, 279 involved one bedroom condos at the average lease rate of $1,394.  Two bedroom condos were the second most popular among leases totaling 242 transactions at a rate of $1680.  There were 1,160 total condos listed at that time making for a list to lease ratio of 47%.

    By contrast the city of Toronto totaled 3339 condo leases during the same period.  One bedroom condos went for an average of $1,647 while 2 bedrooms brought in on average $2,250.  Toronto landlords listed 6863 condos making for a list to lease ratio of 49%.

    Some key numbers reported by TREB in their First Quarter Market Report was the GTA saw a 13% increase on a year over year basis for condominiums rented.  The 1 bedroom average monthly rent for condos was up almost 4% at $1,597 when compared to Q1 of 2012.

  According to TREB, the 2012 Fall Rental Market Survey indicated that Peel contributed 22.7% or the GTA condo rental transactions while only having a vacancy rate of 0.6%.  On the other hand Toronto accounts for 23.6% market share while having more than doubled the vacancy rate of Peel at 1.4%.

What does this mean for a Mississauga condo investor?

    The numbers don’t lie.  There are lots of people trying to make money as indicated by the share volume of listed leases.  Even though the lease to rent ratio is sub 50%, landlords who do lease their condos are making more money.

    This is can be attributed to a couple factors.  Perhaps renters are looking for nicer accommodations with modern renovations.  Some condo owners may need to invest some money to make their condo more desirable.

    Another factor in some condos not being able to get a lease is location.  Certain locations are attractive because of amenities which are nearby which tenants want.  Access to public transit and conveniences are a big draw for people.  Square One condos are a prime example of this and condo fees can be higher than in other parts of Mississauga.

What can be the future for Mississauga Condo renting?

    In my opinion the trend probably won’t change over the next year.  There seems to be no shortage of condos on the market right now.  The condos which are competitively priced with respect to location, size and have the fit and finish tenants are looking for will have no problems attracting business.

    On the other hand landlords who expect top dollar for run down condos will eventually have to make a decision to get out of the business or spend the money to make their potential tenants happy.

By Todd Lee

Tagged with: real estate market rent rental condos mississauga peel landlord tenant

Mississauga Real Estate Market Report

April 14, 2013 - Updated: April 18, 2014Real Estate Market

Mississauga real estate market report

Mississauga, April 14, 2013 – Mississauga area real estate agents reported 1979 sold properties through the MLS system from January 1st, 2013 to March 31st 2013.  Comparatively, the same time last year saw some 2398 reported sales.  This represents a near 17.5% decrease in volume of sales. Some reasons to explain this dip in volume of sales are given by Jason Mercer of the Toronto Real Estate Board: 

“While the year-over-year dip in March sales followed the trend that has unfolded since mid-way through 2012, it is also important to note that the Good Friday holiday was in March this year versus April in 2012. Generally speaking, there are fewer sales reported on statutory holidays and weekends.”

“Some households have put their decision to purchase on hold as a result of changes in government policy.”

“Some households who are looking to purchase a home haven’t been able to find what they are looking for because of tight market conditions.”

    Because of this tight market condition specifically with the low rise market segment Mississauga has seen the average sold price in March increased by around +3% versus last year.  Quarterly results for 2013 also showed overall increase in the average sold price when compared to Q1 2012 of +3.3%.

    Home ownership is still affordable in the GTA.  The total debt payable by households remains below the 39% target set by the Finance Minister Jim Flarherty when accounting for Mortgage payments, interest, taxes and utilities.

Source of chart the Toronto Real Estate board

    Year to date, Mississauga listings are sold on average in 28 days at 98% of asking price with a sum of 1979 transactions totaling $924,980,423.  The most popular segment for buyers is the detached properties.  While not only being the most sought after and expensive property, it is also the most available housing type thus far for 2013.  The huge condo market represents the second biggest share of transactions while being the most affordable segment in the Mississauga real estate market.

Mississauga Real Estate sales Q1 2013

Source of chart the Toronto Real Estate board

    Given current economic trends, unless an unforeseen event occurs domestically or internationally and if interest rates stay the same I predict more of the same for the next quarter.  While there should be more product going for sale as history has shown us during spring, there will be more buyers shopping. Tight market supply versus demand will lead to moderate price increase in the Mississauga real estate market.

By Todd Lee

 

Tagged with: mississauga real estate market todd lee

Condos For Sale / Condos For Rent / Houses For Sale / Contact

 

Copyright © 2011- 2014 www.toddlee.ca. All Rights Reserved.

 
Powered by Lone Wolf Real Estate Technologies (CMS6)