As the Mississauga real estate market grew tremendously last year, homebuyers have had to adapt to a climate where multiple offers and bidding wars are the norm. To better understand the benefits and caveats of such a market, we talked with Randy Selzer, a local realtor with more than 22 years of experience.
1. How has the Mississauga real estate market performed last year, and what are your expectations for 2016?
The Mississauga real estate market mirrored the overall Greater Toronto Area (GTA) in 2015. We saw very strong demand throughout the year, with multiple offers and bidding wars being the norm. There was an acute shortage of listings for freehold properties, and with nowhere left to build in the City of Mississauga, detached homes increased by about 9 percent during the year. What’s even more remarkable is that, on average, the average selling price for detached homes was 100% of the asking price – in other words, on average, throughout 2015, buyers were obliged to pay the full asking price for a detached home.
High-rise condos, where there are still many being built, especially in the Square One area of Mississauga, saw price increases of 5 percent overall. This is strictly a reflection of supply and demand, for unlike detached homes, there are many new condo projects coming on stream. Condos performed very well in 2015, in spite of the record number of new projects being completed. The average condo in Mississauga sold at 98% of asking price throughout 2015. Rental rates are also at record highs, something that condo investors can appreciate.
The strength in this long bull market has been built on three pillars: low interest rates, which make higher priced properties affordable; an overall good economy in southern Ontario, where most people have jobs; and immigration, where on average, 100,000 people move to the GTA on an annual basis. As long as these three pillars remain in place, my expectation is that the strength in the market will continue.
2. What are some exciting real estate projects currently in development in the area?
Three condo developments to consider:
– Parkside Village – a large multi-tower, multi-year project by Vancouver developer Amacon, currently marketing “Block Nine”, two 22-storey high-rise towers. Parkside Village has a good combination of central location, retail at the base of its buildings, and a quality builder.
– 180-190 Webb Drive – a new development by developer Baif, which will be coming to market in early 2016. This is a 25-storey tower plus townhouses, with a very good location near to Square One mall.
– Gordon Woods Condominiums – this is an interesting development planned along the future Hurontario LRT, (LRT is currently in the planning stage, and has been fully funded by the province). Gordon Woods will feature 2 towers at 32 storeys and 25 storeys, plus townhomes, and it is adjacent to a very exclusive luxury neighbourhood, with an added bonus of having close access to the QEW highway.
3. Do you have any advice for first-time buyers?
One of the best pieces of advice is to have a five year plan. Many first time buyers are discouraged that their dream home is out of reach. I tell them to view their first home as not being “for life”, but as only part of a five year plan. Once they have lived in their first home for five years, they will be able to buy their next home, for at that point, they will have enough equity to get the home they want. This seems to help first-time buyers understand that some compromise is necessary when buying their first home.
There are, of course, the usual preparations that any buyer should make: get pre-approved through your lender or mortgage broker, have your agent spell out all closing costs before making the offer, and when you do see a home you want, do not hesitate, because in today’s market, if you wait, someone else will probably get it ahead of you.
If you find yourself in a multiple offer situation, make sure your agent has experience in this. In a multiple offer, you typically have only one chance to have your bid accepted, and you need to make the strongest offer possible. Not just in the price, for there are many other variables which can make your offer the most attractive.
4. Any other insights that you would like to share?
Find a good agent who you trust and like, and be loyal to them – they will be loyal to you. Keep it simple – avoid any complicated real estate investment schemes – simply buy a home, and pay it off. Be glad we live in a country like Canada, where so many people from around the world want to move, to raise their families, and live peaceably.
About Randy Selzer
When he is not busy representing his clients, you will most likely find Randy in the kitchen, as he considers cooking a great stress reliever and creative outlet. Throughout the years, his loved ones have learned to put up with his many gastronomic adventures.