Maximizing Profits in the Brampton Real Estate Market
January 31, 2024 | by bramptonregister.com
According to the most recent census, Brampton is the ninth-largest community in Canada and the third-largest city in Ontario.
So you can well imagine the size of the Brampton real estate market. That’s just over 649,000 people living in this small town, which has grown quickly from being nothing but fields.
It is a neighbourhood of Toronto, but its growth looks like it will continue for a while.
After setting new records for five months, this trend was clear again in January 2022 when Brampton set another new record. Now, home prices are going through the roof. But that’s not all.
The average price of a home sold in Brampton was $1,367,444, 41% more than last year, making it one of the most expensive housing areas in Canada.
Another important fact is that they’ve broken all-time records for home prices for six months in a row.
In Brampton, however, detached houses make up a bigger part of the housing market than in Metro Vancouver and Toronto.
How homes are spread out in each city greatly affects the average price of homes across all cities.
At the start of 2022, condos, which have lower average prices, made up 36% of the real estate market in Greater Toronto but only 6% of the residential market in Brampton.
When looking at different types of property in January 2022, detached houses have seen the biggest year-over-year rise, going up 41.4 percent from last year to this year and 13.4 percent from the month before.
It’s a record, but the average price for selling a detached house in Brampton right now is $1,652,089. Thus, the average price of a single-family home has increased by $484,020 in the past year and by $1953,325 in the past month.
There were also big increases in the prices of other kinds of property every year. The value of semi-detached homes went up by 40% year-over-year, and the average price went up by 10% each month.
On the other hand, the value of condo townhouses went up by 42.5% year-over-year, and the average price went up by 9% each month. The prices of freehold townhouses went up 38% year-over-year and 11.4% each month. The prices of condo apartments went up 30% year-over-year, less than the other two housing types.
Based on the average prices of homes that were sold in January 2022, we can see that a semi-detached house in Brampton went for an average of $1,230,275. There are freehold townhouses that cost $1,129,851, condo townhouses that cost $873,098 and condos that cost $622,579.
Half-detached houses were the only type of property in Brampton that had sales go up from one year to the next. To the 124th sale in January 2022, sales of semi-detached homes rose by 4% over the course of the year.
In contrast, sales of independent homes dropped by 21% year-over-year to 313 sales. Over the course of the year, only 74 freehold townhouses were sold, a 30% drop from the previous year.
There were 53 condo townhouse sales, which is 27% less than the same time last year. There were also 38 condo apartment sales, which is 24% less than the same time last year.
The major issue in Brampton’s real estate market is still the supply of homes, as the number of homes for sale is still going down this month. There were 832 posts in January 2022.
This is 13% less than the 961 items that were added in January 2021.
The 255 open listings at the end of January 2022 are 31.6 percent less than the same time last year. The number of homes for sale in Brampton has dropped to 0.6 months, making it one of the smallest markets in the GTA.
Because the average number of days a home was on the market dropped to six, the average price it sold for is 15% more than the median price it was listed for.
Homes were sold in an hour for 15% more than they were listed for. In January 2022, the home market in Brampton became increasingly fierce. Buyers are still fighting over a small number of homes.
December 2023 market report summary
- The average price of a home sold in Brampton is $987,085 in 2023, which is 0.5% more than the year before.
- While there aren’t many new listings, Brampton’s sales-to-new-listings percentage has gone through the roof.
- The average price of a detached home went up by 1% year-over-year to $1.15M.
- The average price of a semi-detached home dropped by 0.4% from one year to the next, to $896,000.
- The average price of a freehold home dropped by 3.4% from one year to the next, to $828,000.
- The average price of a condo building dropped by 2.6% year-over-year to $661k.
- On January 29, 2024, the best mortgage rate in Brampton is 4.84% for a 5-year fixed loan.
Housing Market Outlook for Brampton in 2024
The average sale price dropped by 11% in the Brampton housing market from $1,187,358 in 2022 to $1,057,077 in 2023. At the same time, the number of sales dropped by 21.1%, from 5,985 in 2022 to 4,722 in 2023.
In 2024, the number of unit sales will rise by 20%, but the average sale price of all types of properties will stay the same. People also think the property market will change from a buyer’s market to a balanced one as the year ends.
Sandringham-Wellington, Fletcher’s Meadow, and Northwest Brampton are the three most likely to be sought-after areas of Brampton in 2024.
When it comes to liveability, buyers are looking for homes that are close to public transportation, amenities, and public services. This is helping the demand for single-detached homes in the area grow.
More people moving to Brampton has made it more important to build new communities on land that is very hard to come by, and the fact that new communities take a long time to get approved has made things even more difficult.
Plus, building purpose-built renters hasn’t been a top priority for decades, making the housing market even tighter.
The main things affecting the housing market in Brampton are the same things affecting the housing market across the country. For example, higher interest rates make it harder for first-time homebuyers to buy homes as they come on the market.
The biggest trends in Brampton Housing Market are:
- Balanced conditions should return to the Brampton region in 2024.
- It is believed that single-detached homes, especially duplexes and triplexes, will be in the highest demand in the area.
- The average price of entry-level homes in Brampton is just under $1,000,000. This three-year low has attracted first-time home buyers to the area.
- Builders and developers undertaking new construction projects are requesting more money from purchasers to counteract rising construction costs.
Frequently Asked Questions (FAQs) about Brampton Real Estate:
1. What is the current population of Brampton?
As of the most recent census, Brampton is the ninth-largest community in Canada, with a population of just over 649,000 people.
2. How has the real estate market in Brampton performed recently?
The real estate market in Brampton has experienced significant growth, setting new records for home prices for six consecutive months as of January 2022.
3. What is the average price of a home in Brampton?
The average price of a home sold in Brampton is $1,367,444 as of January 2022, representing a 41% increase from the previous year.
4. Which type of housing dominates the market in Brampton?
Detached houses make up a larger portion of the housing market in Brampton compared to Metro Vancouver and Toronto.
5. How have detached houses’ prices changed in the past year?
The average price of a detached house in Brampton has increased by $484,020 in the past year, reaching $1,652,089.
6. What is the current situation regarding the supply of homes in Brampton?
The major issue in Brampton’s real estate market is the diminishing supply of homes. The number of homes for sale has decreased, making it one of the smallest markets in the Greater Toronto Area (GTA).
7. What are the expected trends in Brampton’s housing market for 2024?
The housing market in Brampton is expected to transition from a buyer’s market to a balanced one in 2024. Single-detached homes, especially duplexes and triplexes, are anticipated to be in high demand.
8. Are there specific areas in Brampton that are expected to be sought-after in 2024?
Sandringham-Wellington, Fletcher’s Meadow, and Northwest Brampton are identified as the three most likely sought-after areas in Brampton in 2024.
9. What factors are influencing the demand for housing in Brampton?
Buyers are increasingly looking for homes close to public transportation, amenities, and public services, driving demand for single-detached homes in the area.
10. What are the challenges facing the housing market in Brampton?
Challenges include limited land availability for new communities, delays in community approvals, and a historical lack of focus on purpose-built renters. Additionally, higher interest rates are impacting first-time homebuyers.
11. What are the major trends affecting the Brampton Housing Market?
Balanced conditions are expected to return in 2024, with single-detached homes, especially duplexes and triplexes, being in high demand. The average price of entry-level homes in Brampton is just under $1,000,000, attracting first-time homebuyers.
12. How are rising construction costs impacting new construction projects in Brampton?
Builders and developers undertaking new construction projects in Brampton are requesting more money from purchasers to counteract the impact of rising construction costs.