Brampton’s Housing Market in 2022: What you need to know

Brampton has become one of the most expensive suburban communities in Ontario. And it’s only getting hotter. Experts think this won’t change anytime soon and predict that residential prices will continue to rise at an exponential rate. Investors are rejoicing at this news- but will things stay hot forever?

About Brampton.

What does Brampton mean? According to the latest census, it is the third largest city in Ontario and ninth-largest municipality in all of Canada. With a population of just over 649,000 people – this small town has grown quickly from what was once nothing but farmland. And despite being considered a suburb of Toronto, its growth shows no signs of slowing down anytime soon.

After setting new benchmarks for five consecutive months, this continued trend was evident yet again in January 2022 when Brampton set another new benchmark – now home prices are soaring. It doesn’t stop there though; the average selling price of homes sold in Brampton reached $1,367,444 – a 41% increase from last year and making it one of the most expensive housing markets in Canada. One more thing worth mentioning is that this is six consecutive months where they’ve broken all-time home price records.

However, detached houses comprise a higher percentage of the housing market in Brampton in comparison with Metro Vancouver and Toronto. The distribution of properties in each city plays a significant part in the overall average of price of homes. Condos, with lower average prices, comprised 36 percent in the Greater Toronto’s real estate market however only 6% of Brampton’s residential market at the beginning of 2022.

Examining specific types of property in the month of January, 2022 detached houses have the highest year-over-year increase, rising 41.4 percent over last year, and 13.4 percent compared to the previous month. The average price for selling a detached house in Brampton is currently $1,652,088, which is a record. This means that the median cost of a detached house has increased by $484,020 in the past year and $1953,325 over the last month.

The gains in annual prices of other types of property were also significant. Semi-detached houses had a 40 percent increase in year-over-year value and a 10% increase per month in the average price, whereas condo townhouses experienced an 42.5 percentage increase from year to year, and an increase of 9 percent per month in the average price. Freehold townhouses saw an increase of 38% in price year-over-year, and an 11.4 percentage monthly increase and condo apartments lag behind , with a cost increase by 30% year-over-year.

In analyzing average prices for sold for January 2022, we can see that the average sold price for a semi-detached house located in Brampton was $1,230,275. Freehold townhouses costing $1,129,851, condominium townhouses priced at $873,098, and condos with a price of $622,579.

Semi-detached homes were the sole type of property in Brampton that saw a year-over-year rise in sales. Sales of semi-detached homes increased by four percent over the course of the year to the 124th sales of January in 2022. While detached home sales fell by 21% year-over year to 313 sales. Freehold townhouse sales fell by 30% over the course of the year to 74 sales. Condo townhouse sales dropped 27% over the course of the year at 53 transactions, and condominium apartment sales dropped 24% from year-to-year, up to 38 units.

The supply of homes is still the main topic in Brampton’s real estate market, as inventory continues to decrease this month. In January 2022, there were 832 listings January 2022. This is lower by 13% from 961 listings added for January 2021. The 255 active listings as of the end of January 2022 is the 31.6 percent decrease year-over-year. The inventory of Brampton’s market for housing has decreased to 0.6 months, which makes one of the smallest of the GTA. The average price sold for homes located in Brampton is 15% higher than the median price of listing due to the fact that the average number of days on the market decreased to six days.

With homes sold within an hour and at 15% more than the price of listing The month of January 2022 proved to be a progressively competitive market Brampton buyers continue to battle for a smaller number of homes.

GTA home prices up 28% from last year: TRREB

TORONTO — There was no relief for Greater Toronto Area homebuyers last month as the average home price increased up to nearly 28 per cent when compared with last year as a lack of supply continued to hamper the market.

The Toronto Regional Real Estate board said Thursday the average selling price for a home in the region surpassed $1.3 million last month, up from just above $1 million last February and more than $1.2 million in January of this year.

The average price of a detached home hit more than $1.7 million last month, with semi-detached properties at $1.3 million, townhouses at $1.1 million and condos nearing $800,000.

The Ontario board laid much of the blame for the soaring prices on demand greatly outpacing supply and thus, fueling a market where bidding wars, few sellers and a frenzied atmosphere have been the norm.

“I’ve had clients break down and cry for me because when they lose out on a bid, they’re just so frustrated,” said Despina Zanganas, a Toronto realtor with PSR Brokerage. “They put in what they think is really reasonable and it goes for like $100,000 more than they would have expected.”

Condo prices, she said, have been “crazy crazy crazy” in recent months because people are realizing that houses are increasingly expensive, so they are shifting to the most affordable homes “just to get their foot in the door.”

Many sellers also have high expectations. They’re listing homes at elevated prices and if they don’t get the amount they want, she has seen them relist again for a higher amount, driving more anxiety to buyers.

But over the last week, Zanganas has noticed a slight easing in the market and some homes she has kept tabs on have received far fewer showings than she would have predicted.

The board made similar observation after it detected in February that the region is making a “modest move” toward a “slightly more balanced” market.

Those traces of an easing came in the form of new listings, which are still down from a year ago, but by a marginally lesser annual rate than sales.

New listings for the month totalled 14,147, an almost seven per cent drop from 15,146 last February.

“People are just holding onto their houses because there’s no inventory,” Zanganas said.

“If you sell, how are you going to buy? And it’s probably not going to be a step up.”

Meanwhile, 9,097 homes changed hands last month compared with 10,929 last February and 5,622 in January of this year.

That means February home sales were down compared with the all-time record set in 2021, but still eked out the second highest sales rate for the month.

TRREB had forecast sales would be lower this year because many people rushed to purchase homes last year or in the early weeks of 2022 in a bid to get ahead of looming interest rate hikes.

On Wednesday, the Bank of Canada hiked its benchmark interest rate to 0.5 per cent from 0.25, where it has sat for the last two years of the COVID-19 pandemic and served as an incentive to cash-strapped buyers.

TRREB believes the rate hike will have a “moderating effect” on home sales, but will be countered by substantial immigration levels and a continued lack of supply.

It does not see home prices abating in the near-term.

“Because inventory remains exceptionally low, it will take some time for the pace of price growth to slow,” Jason Mercer, the board’s chief market analyst, said in a news release.

“Look for a more moderate pace of price growth in the second half of 2022 as higher borrowing costs result in some households putting their home purchase on hold temporarily as they resituate themselves in the market.”

This report by The Canadian Press was first published March 3, 2022.

By Tara Deschamps, The Canadian Press

Why is Housing Supply So Low in Ontario?

There are some reasons to be optimism given that housing starts increased dramatically in 2021 in the same year, and the efforts around the nation to tackle the shortage of housing are increasing. In spite of these encouraging signs, we remain convinced that the housing shortage in relation to the needs of the population will continue to exert upward pressure on rents and prices and lower the affordability of housing. There is still a lot to be done by policymakers to close the gap in housing.

  • The housing stock in Canada that is adjusted to population is the lowest among the G7.
  • Results differ by provinces within Canada and Canada, and Alberta, Manitoba and Ontario having the lowest numbers of homes per person compared the others provinces.
  • Ontario would require more than 650,000 homes to bring its dwellings-to- people to be equal to all of nation

It’s no secret that people who want to buy homes are struggling to find one they can afford. In fact, even people who qualify for loans may still struggle because there aren’t enough houses to choose from! With so few choices, bidding wars are inevitable, making things even more difficult for buyers. So why does the housing market have such little selection? There are a few different reasons Why is Housing Supply So Low in Ontario?

housing market canada
Source: Scotiabank

Too many studio and one-bedroom condos

When it comes time to purchase homes in Canada, most Canadians prefer townhouses, semis, and detached homes. They are large and can enjoy a front lawn and a backyard. Although condos do not offer additional outdoor space but they are larger to allow for families. But, the majority of condos in the GTA are built to be used as investment properties. Developers target investors who are able to purchase multiple units at once, and later lease them to young professionals and students.

A family of three or more people can’t reside in a small 400 square foot condominium with a walled kitchen and no private space. The older condos located in Mississauga with more than 1,200 square feet are an ideal option, and there are plenty of families who live there. If you come across an old condo available for auction in Mississauga and you are able to purchase it, do so since it’s the best value for your money!

New Home Construction Fell in the back for a few years

The construction of new homes in single-family houses in the last five decades, and includes the average of long-term housing units built. Builders surpassed that average during the time of the housing bubble. This led to an oversupply of houses on the market, and the value of homes fell. This was among the reasons that led to the housing market crash in 2008.

The rate of construction for new homes has slowed. In the past 13 consecutive years, builders weren’t capable of building enough homes to match what was the average. This underbuilding has left us with an inventory deficit of multiple years that could turn into the epidemic.

The Pandemic’s Impact on the Housing Market

When the pandemic struck the country, it brought a new admiration and renewed appreciation for the importance of the home. The need for a secure place to work, live or study in, as well as exercise was even more crucial for Canadian all over the country. Therefore, when mortgage rates fell to less than 2%, buyers were eagerly entering the market to take advantage of these low rates to secure homes that could meet their ever-changing demands. In the meantime, sellers were reluctant to put their homes for sale as fears regarding the pandemic grew.

Lower mortgage rates

Bank of Canada dropped the mortgage rate from 5 percent to under 2 percent, which led to numerous Canadians to purchase homes. People who are looking to buy homes benefit from record-low rates of interest. The demand grew overnight, but the supply didn’t. The first houses sold at $300k to $400k more than the asking price. Many who did not desire to buy a house considered buying a panic house, believing that the prices would rise more.

Market Report Summary for January 2022

  • Average home prices in Ontario have increased by 25.6% in a year to $998,629
  • Toronto home prices increased by 24% year-over-year to $1.07M
  • Ottawa home prices increased by 15% year-over-year to $677k
  • Mississauga home prices increased by 30% year-over-year to $1.15M
  • Brampton home prices increased by 41% year-over-year to $1.37M
  • Hamilton home prices increased by 35% year-over-year to $976k

Here’s the thing: there are less houses on the market, and this is having a huge effect all across Canada. In fact, inventories are lower than ever before and if you’re thinking about buying in Central Ontario or anywhere else in the country – take notice!

If you are looking for property, there is no better time than now! Housing prices are skyrocketing due to limited supply. Low inventory means that this trend will continue over the next few years, so don’t wait too long!

For more information, please contact me at parveen@teamarora.com or +1 (416) 910-8923.

 

Mississauga Location

268 Derry Rd W Unit 101, Mississauga, ON L5W 0H6

Brampton Location

2 County Court Blvd #150, Brampton, ON, L6W 3W8