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Where is the Real Estate Market Going in 2018?

Blog by Gord Honor | January 2nd, 2018

I have been asked many times in the past couple of weeks about what is going to happen with the real estate market this year. As of yesterday we now have new mortgage rules in effect which we believe are going to limit the number of people that can get mortgages from banks. That being said mortgage brokers are talking about using private lenders to finance clients who don't qualify under the new rules.

As far as looking ahead to what the year is going to bring we need to start by comparing to what was happening at this time last year right before the market peaked. Real estate is based on supply and demand so lets start by seeing what the supply is like.

Last year at this time we had a total of only 234 freehold properties on the market in Mississauga compared to 635 today.

Here's how the numbers broke down last year compared to current residential real estate inventory levels

Januaruy 2017 January  2018 Percentage Increase
Number of Detached Homes On The Market 188 442 135%
Average List Price Of Detaged Homes                                         $2,116,000.00 $1485500.00 -30%
Homes Under Under $1,000,000 58 168 190%
Homes Between $1,000,000-$2,000,000 53 194 266%
Homes  Over $2,000,000 77 80 4%

By quick analysis of these numbers it's very apparent that as listings are up by 135% over last year and the average list price is down by 30% that we are not going to see the same type of market we had in the spring of 2017. I believe that it will be a more balanced market with homes taking longer to sell wth about a 30 day average time on the market. Prices will remain where they were in the last part of 2017.