If you have been thinking about investing in the Mississauga real estate market, you may be wondering what it currently looks like. After all, what’s going on in with the market as a whole will largely affect individuals’ purchasing decisions.
As one of Canada’s largest cities, Mississauga is home to the nation’s busiest international airport. In fact, it’s one of the busiest in the world. Not only is there a lot of international travel through the area, but it’s also one of Canada’s safest cities, making it a safe haven for Canadian families looking for a stable place to raise children. Therefore, the Mississauga real estate market looks different than the markets of Canadian cities of comparable sizes.
Mortgage Stress Test
Overall, the Mississauga real estate market has fluctuated quite a bit over the past year. Interest rate hikes in this city and other cities in Ontario have made it more difficult for many people to buy homes in the area. This is largely due to Ontario’s recently implemented mortgage stress test. The government raised interest rates for homebuyers from January 2018 on to ensure that buyers could continue to manage their mortgage payments even if interest rates rose suddenly.
While this could prevent a housing crisis in the future, it has made it more difficult for people in the area to buy houses. Therefore, there has been a decrease in home sales since January 2018. Plus, the low inventory of houses has already put significant stress on the system, even without interest rate hikes.
Increasing Rent Prices
Those looking to rent or lease in the Mississauga real estate market might notice that rent prices are steadily increasing in the area, as they are in most other places in the Greater Toronto Area. However, this isn’t just a problem in the GTA. In 2018, rental prices were raised by an average of 3.5 percent — a significant hike for those looking for affordable housing.
A growing number of millennials in the country is likely to have profound impacts on the Mississauga real estate market soon. As this large generation reaches the age to start buying properties and starting families, there is going to be an increased demand for family housing. However, it should be noted that many millennials are opting for different housing accommodations than their parents’ generation. Instead of choosing oversized houses, many are looking to stay in more urban areas and are choosing smaller living spaces. Therefore, condos and apartments might be in higher demand than larger homes.
Overall, the Mississauga real estate market is expected to continue to undergo significant changes in 2019 and beyond. As investors, buyers, sellers, and others watch for changes in the market, experts will continue to issue predictions and forecasts about what this area’s real estate market could look like in the future.