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Brampton detached home prices climb more than 30 per cent in one year

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Brampton detached home prices climb more than 30 per cent in one year

If you were hoping the pandemic would cool the housing market in Brampton, you might be very disappointed to hear that low-rise homes are costlier than they were in January 2020, with detached house prices climbing 34 per cent year-over-year.

According to data released by the Toronto Regional Real Estate Board (TRREB), the average home price (all housing types combined) in Brampton crossed the $900,000 threshold, hitting a new monthly high at $971,462–up 27 per cent year-over-year.

According to TRREB, the average selling price for homes in the overall GTA will top $1 million for the first time later this year. The board predicts by the time 2021 ends the average selling price in the region will be $1.025 million, up from an average of $929,692 in 2020.

 

“We’ve reverted back to the scenario that really we’ve been talking about a lot over the past number of years, where the supply of listings coming onto the market is not keeping up with growth in transactions,” said Jason Mercer, TRREB’s chief market analyst, at a press conference.

“Taking those demand factors into account, plus what we’re looking at for new listings coming into the market, that spells continued tightness.”

Mercer’s remarks come as the area rang in the new year with an unprecedented flurry of home purchases that pushed the number of sales up by 52 per cent and the average selling price to nearly $1 million.

The spikes were fuelled by an atypical winter, where people were discouraged from gathering for the holidays in an effort to quell COVID-19, the region wasn’t often being blanketed with snow and interest rates were low.

That left people with fewer social engagements, more lending power and more time to hunt for new properties, especially ones outside the hot downtown core that offered an escape from the city while people continue to work from home.

TRREB said that, across the GTA, January home sales reached 6,928, up from the 4,546 homes sold in the same month last year. The average selling price was up by 15.5 per cent to $967,885, an increase from $838,087 in 2020.

The number of new listings also climbed to 9,430, a 20 per cent spike from last year’s 7,848.

As far as Brampton goes, real estate website and brokerage Zoocasa says home sales in January grew 46 per cent with 749 homes sold compared to 513 in 2020. The average home price in the city crossed the $900,000 threshold and new listings saw an uptick of 35 per cent, while active listings at the end of the month were down in the double digits at 16 per cent.

Zoocasa says that by property type, condo apartments sales in January more than doubled in-home growth (108 per cent) with 50 units sold compared to 24 last year. Competition for condo apartment properties in Brampton was fierce, with sellers benefiting most. This is followed by 398 detached home sales (up 43 per cent) and 73 condo-townhouse sales (up 38 per cent). Semi-detached homes also saw a steady increase in home sales annually, with 119 homes sold (up 21 per cent).

The average price increase in Brampton came from the property types with the most square footage, with detached homes at $1,168,068 (growing 34 per cent year-over-year) and semi-detached homes at $881,492 (growing 24 per cent year-over-year). The average home price for a condo townhouse had a slower annual growth at 12 per cent to $612,866 and condo apartment prices had a slight uptick of 5 per cent to $478,770.

TRREB predicts sales will total 105,000 in 2021 and new listings will hit 160,00, up from 95,115 and 156,755 respectively last year.

TRREB president Lisa Patel said those spikes will be fuelled in part by the rollout of COVID-19 vaccines, declining cases of the virus in hot spots and very low mortgage rates.

“Once we shift out of this lockdown, those that are comfortable will have the opportunity to put their homes on the market,” she said.

“That might open up supply a little bit more.”

The board believes new condominium apartment listings will slow towards the second half of the year and low-rise listings will remain constrained.

Market conditions for low-rise homes, including detached houses, will remain very tight, with sales rising at a faster pace than listings, TRREB warned.

With files from Tara Deschamps, The Canadian Press

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