The saying when it comes to the temperature across Canada is “if you don’t like the weather, just wait five minutes.” This old cliché accurately represents some of our largest cities where things can move from pouring rain to bright sunshine almost in the blink of an eye. The same is often true of the real estate market across the country, where it often feels like things can change just as quickly.
While the days are warm and the sun is shining bright now, fall is inevitably around the corner. For buyers and sellers in Mississauga waiting for the right time to make their next move with Arora Realty, a new season can bring new market conditions and new opportunities. Yet in real estate, it’s nearly impossible to predict anything with 100% accuracy.
We spoke with Ryan Biln, an economist with the Canadian Real Estate Association (CREA), to get his thoughts on what’s to come in the last quarter of 2023 that may impact the Mississauga market.
Interest Rates Keep Surprising Us
According to Biln, the market is stronger than what economists might have expected given the frequent hikes in interest rates since spring 2022. At the start of the year, the Bank of Canada had signaled a freeze in rate hikes, which led buyers to take advantage of potentially great deals. However, with two more hikes since that time, the Mississauga market was cooler in the summer than it might have been otherwise.
However, Biln noted the cooler temperatures on the market may not be over just yet. “With uncertainty about whether we’ll see another hike at the September [Bank of Canada] meeting, we may see this slowdown continuing into the second half of the year,” noted Biln.
CREA has already adjusted its forecast for the rest of 2023 to account for what may ultimately be a cool down. The CREA Housing Market Report released on August 15, 2023, showed the Aggregate Composite MLS® Home Price Index (HPI) is just 1.5% below what it was a calendar year ago. This is the smallest decline the Canadian market has seen since October 2022, which could indicate year-over-year comparisons could return to positive territory as we close out 2023.
Who Ultimately Benefits – Buyers or Sellers?
So who’s coming out ahead in Mississauga’s confused market—buyers or sellers? In short, both sides are working to navigate a complicated landscape.
However, Biln notes CREA’s economists have seen some degree of balance restored in the market. In March, for example, listings were at a 20-year low. This summer though, in line with that ‘wait five minutes’ analogy, the number of new listings has returned to normal for this time of year, and that could mean more selection for eager Mississauga buyers ready to jump into the market with Arora Realty.
Where Are the Hot Markets?
It’s predictable to talk about the overheated real estate markets in Toronto and Vancouver as being unaffordable, with sky-high prices that well exceed the budgets of most hopeful residents. These frenzied clusters have kept expanding population circles further outside the urban centres, with new communities like Mississauga continuing to grow and expand as residents clamour for access to the downtown core, especially with many hybrid workplaces here to stay.
So what’s coming down the pipeline for fall of 2023 in Mississauga? Just like watching the weather change, local buyers and sellers may have to wait those few extra minutes. Economists across the country are paying close attention to whatever announcement comes from the Bank of Canada in September, and forecasts will be written accordingly leading into 2024. No matter what happens though, the team at Arora Realty will be ready to help you make your next move in the Mississauga market.
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