What a year 2020 has been so far. The COVID-19 pandemic has prompted change in a number of areas, not the least of which is real estate. In this post, we’ll take a look at the Brampton housing market and discuss how recent events have shaped it. If you’re in the market for a new home in Brampton, this should shed some light on what you can expect while shopping around.
Brampton Housing Prices in 2020
Brampton remains one of the Greater Toronto Area’s most sought-after housing markets. A quick look at the city’s history and culture will make the reasons for that exceedingly clear; people enjoy living and working in Brampton.
As such, housing prices have not been as heavily affected as you might expect. According to Zolo, the average house price in Brampton between May and June was $767,000. That represents a 6.7% increase compared to the same time last year. The figure is down just 2.5% compared to the previous month.
While this means buyers aren’t receiving much in the way of a “COVID discount,” it also instills confidence that Brampton’s housing market can hold up against even the most turbulent of economic times.
This should come as no surprise. After all, Brampton’s economy is substantial, with local businesses contributing $900 billion to the nation’s GDP in 2016. The stability of Brampton housing prices reflects the high demand for housing in the city, which is one of Canada’s most economically productive.
Despite the steady growth of Brampton housing prices, it remains a very competitively-priced city compared to nearby Toronto. There, the average detached home price is $1.04 million. Even in the suburbs, you can expect to pay an average of $843,637. Your money goes a lot further in Brampton, too, buying a nicer (potentially brand new) home versus some of Toronto’s older yet still expensive housing.
Brampton Real Estate Market Trends
As of writing, Zolo statistics show that detached houses remain the most commonly-sold in Brampton, followed by townhomes. Condominiums make up a much smaller percentage, with only 40 having been sold in April compared to 223 and 220 for detached properties and townhomes, respectively.
This preference for houses rather than condos reflects Brampton’s continued “suburban” vibe, despite it having a population comparable to cities like Portland and Baltimore. The city’s population density is relatively low, meaning that residents can get a decent chunk of land all to themselves.
Time Spent On Market
Perhaps one of the most unsurprising Brampton real estate market trends is that properties are spending much more time on the market than they were this time last year.
In May 2019, homes in the $250,000 to $500,000 range spent an average of 18 days on the market according to Zolo. That’s shot up to an average of 34 days this year. Homes in the $500,000 to $750,000 range show the largest disparity, with last year’s 15-day average turning into a 39-day average this year. Properties in the $1.5 million to $2.5 million range are also sitting on the market considerably longer, with the 21-day average having become 38 days.
Overall, homes are now sitting on the Brampton real estate market for an average of 38 days.
While homes in even Brampton’s best neighborhoods are sitting on the market for longer, that doesn’t mean there’s a whole lot of extra inventory to go around. In fact, May saw just 935 new listings compared to 1,472 in June of last year.
This reflects the fact that, while demand for real estate in Brampton has not cratered, it has experienced a decline.
How Brampton Compares to Other Cities in the GTA
Toronto’s housing market saw a major boom in April that Zolo’s statistics suggest has yet to reach Brampton, even now in June. Toronto is, of course, a much bigger market in terms of population and residences but the disparity is still somewhat staggering, even if it’s not unexpected. While homes in Brampton are by no means on a “fire sale” of any sort, the recovery has been more measured, giving those currently in the market an opportunity to buy at lower prices than usual.
At Paradise Developments, we’ve been taking all the precautions to ensure that you remain safe while shopping for a property during this time. Check out this article for more information about how virtual tours can keep everyone safe. Be sure to check out our market overviews for these cities as well:
Brampton Housing Market Outlook
Where does Brampton’s housing market go from here? Economically-speaking, things appear to be improving rapidly throughout Canada. Different sectors of the economy are reopening and many real estate experts in Canada are predicting a multi-stage recovery for the property market.
RBC, for example, expects the nation’s housing market to see a 30% decline in home resales, which would put it at a 20-year low. According to the report, it may take up to a year for buyers to reach levels seen prior to the pandemic. Experts are still not expecting a full collapse of the housing market.
RE/MAX, meanwhile, has suggested that the current price declines are more of a “leveling off” of previously “unsustainable” growth rather than anything to be particularly alarmed about.
What This Means For Homeowners
There’s no denying that the current economic environment is unnerving for prospective real estate buyers, even in hot cities like Brampton. While you should definitely consult a reputable advisor before making a decision, few Canadian real estate experts are predicting a long-term collapse for the market. At Paradise Developments, we partner with Scotiabank Specialists to provide our clients with top-notch advice. The fact remains that getting a mortgage in Canada requires significant mortgage stress testing and those approved can be confident in their ability to weather the current situation.
In other words, if you’ve been planning and preparing for your home purchase for a while, it doesn’t automatically become a bad idea based on the current, temporary, situation.
We hope this guide has been helpful to you and we trust you’ll check out one of our fine new homes in Brampton if you’re in the market!