COVID-19 has had a profound effect on just about every market imaginable. Much has been made of how the virus has made life very difficult for local businesses, restaurants, and apartment rentals. However Coronavirus has also had a resounding effect on the housing market that could have lasing ramifications for years to come.
As mentioned, the rental market is in flux because most citizens haven’t been able to pay rent, and so that’s had to have been frozen. As of April 2020, the average cost of a two bedroom apartment for rent in Mississauga is $2249, so the costs are not dropping at all.
And the same can be said of the housing market. In April, the average price of a home sale was $1,074,672, and the average condo sale price was $537,000. Those numbers are almost exactly the same as they were back in January, when none of us had even heard of Wuhan.
Most interestingly, these prices are holding firm in spite of the actual sales of houses plumetting by upwards of 72%! Reliable realty agency, Zoocasa, reported that in April there were 532 new listings, but only 260 homes sold. Those numbers mean the market has seen a 72% year-over-year decline in sales compared to listings.
This is bittersweet news. On one hand it’s good that the housing market is remaining strong and, surprisingly, not faltering during a global pandemic. However, on the other hand, Mississauga’s hosuing market is notoriously expensive, making it nearly impossible for low-income workers to ever own a home in the city.
As for when the market will rebound in terms of sales it’s difficult to say. Right now the average worker is struggling to make ends meet as the economy slowly re-opens. By, say August, most people will probably be back to work and everything back to some semblance of normal, but does that mean people will be ready to dive into a potentiall volatile housing market?
Most will want to wait and see how the dice fall before making any move, so it could be last 2020 or early 2021 before we see the number of home sales actually regain their footing. Maybe by then Mississauga will actually be a buyer’s market, but don’t hold your breath.