Sales tumble, but average Brampton real estate prices remain mostly stable over 2018

TheStar.com
Feb. 13, 2019
Graeme Frisque

Brampton’s real estate market shared the same fate as the rest of the GTA when it came to years-low sales figures in 2018, but fared better than most when it came to average prices.

According to the Toronto Real Estate Board’s (TREB) monthly December market report and annual look back, the average sale price for all types of dwellings in Canada’s ninth-largest city closed out the year at $685,812. That was up only slightly over the average of $671,332 to start the year in January.

Brampton’s detached house sector saw very small growth from an average price of $796,731 in January to $806,121 to close out the year, according to the Toronto Real Estate Board.

After adjusting for cancelled sales throughout the year, TREB reported a total of 7,394 sales in Brampton in 2018. That represented a 15.7 per cent decline from the 8,771 transactions recorded in 2017, and a full 32.6 per cent lower than the record of 10,964 sales set in 2016.

December, a traditionally slow month, was by far the slowest of the year for Brampton’s market with only 379 sales registered. Brampton saw 537 sales in December 2017, representing a 29.4 per cent year-over-year decline.

According to TREB, the Greater Toronto Area as a whole saw the lowest number of sales in the past 10 years in 2018.

“Higher borrowing costs coupled with the new mortgage stress test certainly prompted some households to temporarily move to the sidelines to reassess their housing options. With this said, it is important to note that market conditions were improved in the second half of the year, both from a sales and pricing standpoint,” said president Garry Bhaura in TREB’s annual report.

Each of the four housing-type sectors tracked by TREB saw growth in Brampton last year, but only apartment-style condominiums saw growth of any real statistical significance.

The average sale price for an apartment-style condo came in at $395,912 for December 2018, up 13.9 per cent compared to the January average of $347,677 to start the year.

“Price growth was strongest for less expensive home types, as many home buyers sought more affordable home ownership options,” added Jason Mercer, director of market analysis and service channels in TREB’s December report.

Brampton’s detached house sector saw very small growth from an average price of $796,731 in January to $806,121 to close out the year.

Similarly, semi-detached homes averaged a sale price of $621,995 to start the year, ending it up only slightly at $629,727 in December. Townhouse-style condos grew in average value from $462,844 in January and finished 2018 at an average sale price of 479,268, just 3.5 per cent higher.

Those gains are a far cry from those seen between 2012 and the market peak in the spring of 2017. After years of monthly and year-over-year gains, Brampton’s market peaked at an average value of $765,156 for all types of dwellings. It closed 2018 down 9.9 per cent from that high-water mark.

However, the average sale price in Brampton is still up significantly since 2012. In January of 2012, a home or condo could be had for an average of $386,210. The average of $695,975 to close out 2018 still represents an 80.2 per cent increase over an 84-month period.