Neighbourhood Reports

Investors Drive Growth in Mississauga

Published November 1, 2014 by Marcus Assalone
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A view of the City of Mississauga

Sales numbers for the month of September 2014, recently released, show dramatic shifts in growth for the city of Mississauga. Compared to sales recorded during September the year earlier, the average Mississauga freehold home increased in value 5.61% to $673,559.

Mississauga did have two nieghbourhoods with price declines. Clarkson suffered the greatest decline with the average sales price dropping 16.97% from those in September 2013. The loss is troubling as demand for this neighbourhood has also been declining. The other area was in Streetsville, with a decline of 4.8% y/y. This area also had lower sales.

The greatest price increase occurred in Erindale. The average price here rose almost 45.5% y/y. This is due to the sale of no less than four million dollar properties that heavily weighted the average sale price. Normally in this area, appetite for home prices struggle to break $700,000. Homes here are centrally located, close to the Mississauga Golf and Country Club, The University of Toronto’s Erindale Campus, Erindale GO station in a mature residential area.

This home sat on the Erindale market for a year

This home sat on the Erindale market for a year

with high end finishes it was listed at 1.5 million

with high end finishes it was listed at 1.5 million

it finally sold in September 2014 for around 1.3 million

it finally sold in September 2014 for around 1.3 million

 This is an example of where an investor purchased a lot, split it into two, and built two luxury homes on it for profit. This type of activity increases the value of the homes in the area.

Of the million dollar properties sold in September, the highest was sold for around 1.3 million after an investor purchased a lot that was severed, split into two, and two luxury properties were constructed. Another of the properties had its interior upgraded with high end finishes. This area is the perfect spot for investors as it has great family amenities. The amount of sales also more than doubled over the same period in 2013

The neighbourhood with the next highest average increase was Lakeview. Prices here were not so dramatic, they only increased a little more than 19% but the same investor forces are at play in this market. Prices here have been skewed by a few million dollar sales. Two of them were listed at 1.5 million and sold for around 1.3 million and a third was listed at 1.4 million and sold for around 1.1 million.

This home replaced a tear down in Lakeview

This home replaced a tear down in Lakeview

it was loaded with high end finishes

it was loaded with high end finishes

after four months it sold for around 1.3 million

after four months it sold for around 1.3 million

This is a modern architecture home that struggled since January 2013 to sell, but finally it sold in September 2014 for around 1.3 million

This is a modern architecture home that struggled since January 2013 to sell, but finally it sold in September 2014 for around 1.3 million

This is another home that replaced a tear down

This is another home that replaced a tear down

it sold for around 1.1 million

it sold for around 1.1 million

One of the houses that sold for 1.3 million had an unique modern architecture and struggled to find a buyer. Eventually it did sell.

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Heat map of increases in the average sale prices in the city of Mississauga. The more intense the colour the greater the change. Red Indicates growth while blue indicates a decline. Areas without enough data to determine a trend are uncoloured.

Other areas with good growth performance include the area around Erin Mills Town Centre shopping mall. Average home prices increased 17.24% to $822,440 demand has increased here and growth of this type is pretty normal for this area that is home to the Credit Valley Hospital. Malton, home to the city’s lowest priced average home also matched its historical performance and increased just over 14%.  Lorne Park’s rocketing growth during the summer months subsided. Prices here only increased a little more than 12% even though the number of sales increased slightly.

Other areas of Mississauga experienced moderate growth. From between just over 2% to around 6.7% year over year.

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