Sam Kamra is a Real Estate Agent, Industry Insider, Private Lender and Co-Founder of MortgageCalculator.ca with over 7 years of experience and 500+ sale transactions. Sam shares his opinion about Brampton Real Estate market, which he believes has rebounded both in sales volume and prices this year compared with 2017, especially in the under $1 million segment.
This fall season has been a hot market for the Greater Toronto Area, specifically, Brampton. A perfect example of a sustained housing market recovery, Brampton prices and sales have rebounded at a strong pace. Market data has shown that the average sale price of all property types in Brampton has seen an upward trend. The market spike is affecting more than just home sales – rental prices in Brampton are increasing as well.
Brampton Housing Boom: What you must know?
Let’s face it, living in ‘greater Toronto’ is far more feasible than living in Toronto. Here are some things to be aware of if you’re thinking about buying or selling in Brampton:
1. Sales Higher Than New Listings
Sales have generally outperformed the listings available. And why not? Brampton is a great place to find a perfect home for yourself. Each of the four housing sectors: Detached, semidetached, townhouses and condominiums fared better when it came to average home prices. There may have been a few slower months, but the average real estate prices remained mostly stable over 2019.
2. Supply vs. Demand
Inventory challenges remain intact in the GTA areas, especially in Brampton. Prices are climbing due to the scarcity of affordable homes in Canada’s 9th most populous city. If you are a prospective buyer, you may face some challenges ahead with limited inventory and high prices. Of course, a reliable mortgage broker can help you find the best available deals.
3. Immigrants: Love for Greater Toronto Area
The beauty, cultural diversity and ever-growing benefits are the many reasons why GTA has an international draw. Most of the newcomers wish to settle in Toronto or its suburbs, of which Brampton is the hottest and trendiest location. The ease in commuting, cultural interests, and connectivity to Toronto, make Brampton one of the most lucrative destinations for immigrants. The results being an increase in housing demand!
4. Qualifying a Mortgage:
This can be a major challenge, especially for first time home buyers. But, if you cross the hurdles and get a decent mortgage rate approval, you win half the battle.
And, here’s some more good news! The market is succeeding in recovering from the impact of the mortgage stress test and stringent lending guidelines introduced in recent years.
Read on for deeper insights on the Brampton housing market.
House Prices in Brampton: By the Numbers
The 2019 spring season, particularly May, saw a major positive increase in sales volume. The sluggish period fell back on track. This listing graph shows the real estate revival on a month-over-month basis.
Detached Houses envisioned a significant boost, with the average sale price of $766,350 in January 2019 to as high as $800,500 in September 2019. The number of monthly houses sold once went to a whopping 520 sales in May 2019, then slowed down a bit, and now back to a full recovery mode.
Semi-detached houses also scored surprisingly well. It’s unbelievable but true! This October, a 3-Bedroom semi-detached house in Brampton listed merely at $749,000 was sold remarkably high at $831,000 with a bulk of 25 registered offers on a table. Isn’t that crazy?
Not to forget, the dazzling townhouses emerged as clear winners in reshaping and re-energizing the real estate market. Freehold townhouses' average sale prices jumped from $605,000 in December 2018 to $657,000 in September 2019.
In a matter of nine months, Brampton townhouse sales more than doubled, i.e. from 107 sales in December 2018 to 224(!) transactions in September 2019.
All markets tracked a fair improvement in September 2019 housing sales. However, with fewer listings, rising demand, and skyrocketing prices, the Brampton housing market is set to create new records. Together with its history, a modernized look, a powerful economic base, easy accessibility, and wonderful amenities, Brampton has a lot to offer.