The Brampton housing market is experiencing a drop in supply, making this a key moment for real estate investors and interested homebuyers to keep a close watch. More people than ever before are moving into Brampton as the Toronto market continues to boom. While Brampton is an incredibly popular region for newcomers, there is a consistent lack of supply in residential real estate — and that supply is quickly getting much smaller. This phenomenon is driving up demand and raising housing prices across the region. With new announcements from the Toronto Real Estate Board (TREB), there are plenty of reasons to keep an eye on what is happening in Brampton.
Latest Data Show a Tightening Marketplace
TREB announced that GTA area real estate agents made 8,491 sales using the MLS system in October 2019. This represents a 14 percent rise over October 2018’s 7,448 residential sales. Sales increased year-over-year for every major type of residential property. Brampton’s housing market is increasing the rate at which properties sell as the area’s population continues to grow. This is resulting in a tighter market for newcomers and price increases.
Housing continues to be competitive because of its scarcity. Some are putting forward the idea of reintroducing 30-year mortgages, but it is not clear whether this would alleviate the difficulties homebuyers experience. New listings were down by almost 10 percent in October 2019 compared with the same time last year.
The tightened Brampton housing market has caused price growth across every major market segment. Open house events are getting more crowded, and many properties receive multiple offers before selling. The average price of residential real estate has climbed to $739,889 — a 5.5 percent increase from 2018. In light of these factors, TREB has asked all levels of government to work to create more housing.
The Future of the Brampton Housing Market
Market conditions in Toronto have continued to tighten through the year, with an acceleration of the annual price growth rate. This means that homebuyers looking to enter the Brampton area should probably do so sooner rather than later. However, homebuyers should be prepared to look at multiple properties and perhaps even make multiple bids on different properties before finding one. Homebuyers who are looking to expedite the process should consider hiring a real estate agent to help them more easily navigate the Brampton housing market.
However, for those looking into Brampton real estate, this may be just the opportunity. Brampton is well poised to be a powerful, growing market overall in the coming years. For those who are less inclined to search out multiple properties and make multiple offers, it may be better to wait a few years for Brampton to jumpstart more new residential construction.