October 26, 2017
Today we take a look at Bromsgrove Road townhouse prices and sales activity in this popular area of Clarkson, Mississauga.
The 2017 real estate market in the Greater Toronto Area is really a tale of two separate markets: the first four months of the year, from January 1 until April 30, when the Ontario and federal governments brought in steps to cool down the market, and then the next six months of the year, from May 1 until the present day, after those steps took effect.
Today we will look at a micro niche market – the townhouses along Bromsgrove Road. They are part of Clarkson, itself a niche area of Mississauga, which is part of the overall GTA real estate market. There are currently 8 separate condo townhouse corporations along Bromsgrove Road, running from near Southdown Road in the east, to Winston Churchill Boulevard in the west.
These are all classic townhouses, built in the 1970’s, and feature single car garages, for the most part, 3 or 4 bedrooms, and either gas or electric heating. One complex on the street features underground parking, which places it in a slightly different category.
So let’s look at the sales activity for 2017 so far.
32 sales so far this year
Jan 1 – May 1: there were 15 sales = 3.75 sales per month
May 1 – Oct 26: there were 17 sales = 2.83 sales per month
Conclusion: sales Volume has dropped approximately 32% since new government regulations took effect
Jan 1 – May 1: average actual sales price = $522,720
May 1 – Oct 26: average actual sales price = $454,838
Conclusion: actual selling Price has dropped by approximately 15%
Sold as a Percent of Asking Price:
Jan 1 – May 1 = townhouses were selling at an average of 120% of the asking price
May 1 – Oct 26 = townhouses were selling at an average of 101% of the asking price
Conclusion: crazy bidding wars are over for the time being, but buyers are still paying close to, and sometimes more than the full asking price
How Long does it take to Sell
Jan 1 – May 1 = 4 days
May 1 – Oct 26 = 16 days
Conclusion: although the time it takes to sell (“days on the market”) has increased, 16 days is still a very low number, and would indicate an ongoing healthy real estate market.
While sales and prices have moderated since the government’s “Fair Housing” plan took effect, and while minor increases in interest rates, and additional restrictive mortgage requirements have had an effect, we are still seeing continued strength in this real estate market. Some of my earlier articles and videos have predicted a full recovery beginning early in the new year, and while there are always new factors to consider, it seems reasonable that while the three underlying drivers of the real estate market in the GTA remain in effect, the market will continue to thrive. These are the three drivers of our local market:
1.) low-interest rates
2.) continued strength in the local economy,
3.) continuing high levels of immigration into the GTA
And that’s a wrap for now. I will publish a year-end review at the end of December, and we will look forward to 2018 at that time.
If you are thinking of selling, you could hedge your bets and wait for the new year, but the real estate market today is healthy, and there is very little competition right now. If you are looking to buy, now may not be a bad time at all, because you may be able to avoid future bidding wars, should they return.
**UPDATE** See Full Year Stats Here
1100 Burnhamthorpe Rd W
Mississauga, ON L5C 4G4