The supply of available homes and condos in Brampton and Mississauga has more than doubled since February while prices and sales have fallen significantly.

The Toronto Regional Real Estate Board (TRREB) released its GTA market stats for April earlier this month showing 1,285 active listings on its MLS system in Brampton and 1,101 in Mississauga.

In February, Brampton had just 565 properties listed for sale with Mississauga sitting at 516. That marked a 127.4 per cent increase in Brampton and a 113.7 per cent spike in Mississauga in tow months.

Total sales and prices have moved in the opposite direction in both cities over that time, with the average price for all types of dwellings combined in Brampton falling 9.8 per cent from $1,346,275 in February to $1,241,658 last month.

Likewise, the combined average sale price in Mississauga dropped from a record high of $1,225,339 in February to $1,170,211 in April — a 4.5 per cent decline in two months.

While average prices have fallen from their peaks seen earlier this year in both cities, prices remain much higher than they were in April 2021.

“Despite slower sales, market conditions remained tight enough to support higher selling prices compared to last year. However, in line with TRREB’s forecast, there is evidence of buyers responding to increased choice in the marketplace, with the average and benchmark prices dipping month-over-month,” said TRREB chief market analyst Jason Mercer in the organization’s April GTA market analysis.

Year over year, sales dropped over 40 per cent in both cities with total monthly transactions in Brampton falling 46.2 per cent from 1,331 in April 2021 to 716 last month. April 2022’s sales total was the lowest seen in Brampton since 2009 excluding April 2020 when Ontario was under a provincial stay-at-home order due to the COVID-19 pandemic.

Mississauga saw its lowest sales total for April since the mid-1990s when TRREB started making sales data available to the public. That city saw just 720 sales last month, representing a 42.1 year-over-year decline in sales from 1,243 transactions in April 2021.

TRREB is attributing the rapid decline in sales and prices to higher borrowing costs after the Bank of Canada decided to raise its benchmark overnight lending rate by 0.75 basis points in an effort to slow down the rapid rise in inflation.

“Based on the trends observed in the April housing market, it certainly appears that the Bank of Canada is achieving its goal of slowing consumer spending as it fights high inflation. Negotiated mortgage rates rose sharply over the past four weeks, prompting some buyers to delay their purchase. Moving forward, it will be interesting to see the balance the Bank of Canada strikes between combatting inflation versus stunting economic growth,” said TRREB president Kevin Crigger.

Source: https://www.mississauga.com/news-story/10626494-active-real-estate-listings-skyrocket-in-brampton-and-mississauga-as-prices-and-sales-plummet/