September 2022 rates saw the average price of a detached home in Mississauga drop year over year for the first time since November 2019. It’s also the fifth consecutive month that prices have fallen, due mostly to the sharp rise in interest rates.
Data from the Toronto Regional Real Estate Board (TRREB) show that the average price for detached units in Mississauga in September was $1,440,490, versus $1,594,863 in September 2021, indicating a year-over-year decline of almost 10%. Even more significantly, the average price in 2022 alone has fallen from $1,964,077 at the peak to the current $1,440,490, a decline of a staggering $523,587.
The last time prices showed a year-over-year decline was in November 2019, but only at 1.1%. The average price went down to $1,104,975 in November 2019 from $1,116,813 in November 2018. Since then, the average price for detached homes continued to rise, peaking at $1,964,077 in January 2022.
READ: Canadian Home Prices Have Fallen 20% Since The Peak, Sending Household Net Worth Plummeting
The cooling of the housing market has been attributed to the Bank of Canada’s (BoC) interest rate hikes, as it tries to quell inflation. BoC governor Tiff Macklem said last week that more rate hikes should be expected, with the annual inflation rate still at 7% in August. The BoC is targeting to bring the inflation rate down to 2%.
READ: Toronto’s Falling Home Prices Are Pushing Rent Prices Up
While the average price is now down 26.7% from January, prices in Mississauga are still some of the highest in the country. The country’s seventh largest city also ranks seventh for most expensive per square foot.
Information for this briefing was found via Twitter, TRREB, and InSauga, and the sources and companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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