Some Condo Buyers Who Purchased at the 2022 Market Peak are Realizing Staggering Losses
Some condo apartments in Mississauga are selling for far below their 2022 peak value.
For most, this simply means their 2022 paper gains have evaporated — but for those who purchased at 2022 peak pricing, and who are forced to sell in the current environment, this can materialize into very large, very real, losses.
33%, $246,000 Loss in Downtown Mississauga
Some areas of Mississauga are being particularly hard hit.
For example, in this downtown Mississauga complex, two bedroom, two bathroom condo units were selling for as high as $751,000 at market peak in April 2022 — $30,000 over asking.
Fast Forward 2 Years –
Just this week, this exact same 2 bedroom unit, which was purchased for $741,000 in 2022, sold for $505,000.
A hefty 33%, $246,000, loss in just 2 years’ time.
(Unit number redacted for privacy reasons. It should be noted that the 2017 and 2022 listing for this unit includes a parking spot, but the 2024 listing does not. While it is likely a listing error, if the parking spot were no longer included due to a severance or construction, the value of a underground parking spot in Mississauga hovers around $30,000 and would not make a large difference in the loss amount.)
Average Mississauga Condo Price Down 15.5% From Peak
While there are some condo losses in excess of 30%, the average condo in Mississauga has depreciated by 15.5% since the peak in March 2022, according to data obtained from CREA:
Mississauga Real Estate Board Optimistic
Given the anticipated Bank of Canada cuts, and new initiatives expected in the 2024 Federal Budget, the local Real-Estate Board is optimistic.
The Mississauga Real Estate Board, which represents over 2,500 real estate Brokers and Salespersons from Mississauga and surrounding areas, released the following statement in March:
Our local market maintained its balanced state, and with the arrival of the spring market and anticipated policy adjustments from the Bank of Canada later in the year, there is optimism for an eventual turn around after the prolonged downturn we have experienced.
– Rita Asadorian, President of the Mississauga Real Estate Board.
