admin Home sales data and insights from local Realtors suggest first-time buyers are beginning to re-emerge in Mississauga after sitting on the sidelines for much of the past year.
“The past few months have been surprisingly busy,” says Sarah Khan, a Realtor at Royal LePage Signature Realty. She notes that starter condos and smaller townhomes have seen more showings, and multiple offers are beginning to creep back in. “It’s not the frenzy of 2021, but there’s definitely more competition now.”
Signs of Life in the Condo Market
In July, the average price of a condo apartment in Mississauga was $623,000, according to data from the Toronto Regional Real Estate Board (TRREB). That’s up 5% from the same time last year. Townhomes also posted gains, with an average price of $868,000 a 7% year-over-year increase.
Sales activity, however, tells the bigger story. Transactions in the condo segment rose 22% compared to July 2024, fueled by demand from younger buyers taking advantage of stable borrowing costs.
“Most of them are end-users, not investors,” Khan explains. “They’re people who delayed buying when interest rates jumped and now feel more comfortable moving forward.”
This marks a shift from 2022 and 2023, when higher borrowing costs froze many first-time buyers out of the market. Some opted to rent longer, while others continued saving for larger down payments. Today, with interest rate increases paused and more predictable lending conditions, confidence is gradually returning.
Rental Pressures Driving Ownership
One of the biggest motivators for first-time buyers is the rising cost of renting. According to Rentals.ca, the average rent for a one-bedroom apartment in Mississauga is now $2,600 per month, while two-bedroom units average more than $3,100.
“They’re running the math and realizing owning might be cheaper long-term,” Khan adds. “Even if monthly payments feel high at first, at least they’re building equity instead of paying someone else’s mortgage.”
For many, the tipping point has been landlord restrictions and rent hikes. Some tenants worry that annual increases even under rent control will soon outpace their income growth. That has encouraged them to look for stability in ownership, even if it means starting small with a condo or stacked townhouse.
Detached Homes Still Lagging
Not every part of Mississauga’s market is seeing a rebound. The detached home segment remains quieter, with average prices still down 9% from their pandemic peak. While the current average detached price sits around $1.35 million, many buyers remain cautious.
“There’s still hesitancy,” says David Lee, broker at RE/MAX Real Estate Centre in Mississauga. “But compared to last fall, people are more confident. We’re seeing fewer lowball offers and more serious discussions.”
He explains that the higher price points are still a barrier for first-time buyers. Even with financial help from family, the gap between condos and detached homes is significant. Some homeowners who bought during peak pricing are reluctant to sell at today’s levels, creating a standoff that keeps inventory lower than expected.
That said, move-up buyers those looking to transition from a condo or townhouse into a detached home are beginning to test the waters. If activity among first-time buyers continues to increase, Lee believes it could have a ripple effect that helps unlock more detached transactions later this year.
Who’s Buying in Mississauga?
The new wave of buyers is a mix of young professionals and new Canadians looking to put down roots in the city. Many are in their late 20s and early 30s, often purchasing with financial support from parents.
“There’s definitely more family involvement in first-time purchases than in the past,” says Khan. “Parents see how high rents are and want to help their kids get into the market sooner rather than later.”
Another group driving activity are young couples who delayed marriage or starting a family during the pandemic. Now, with more stability in the economy and housing market, they’re moving forward with long-term plans.
Some buyers are also considering Mississauga over Toronto because of relative affordability. While Toronto’s average condo price still hovers near $750,000, Mississauga’s remains lower. Proximity to major highways and transit especially with the Hurontario LRT (Hazel McCallion Line) nearing completion is another draw.
Market Dynamics Are Changing
For much of the downturn, sellers in Mississauga held firm on asking prices while buyers waited on the sidelines, sometimes submitting lowball offers. That dynamic is beginning to shift.
“We’re starting to see bidding competition again, especially in the condo and townhouse segment,” Khan says. “It’s not wild bidding wars, but when a good unit is priced right, it moves fast.”
At the same time, some forced listings are also appearing. Buyers who stretched themselves during the pandemic, or who purchased investment condos banking on short-term rental income, are now re-selling at lower margins. This has created selective opportunities for first-time buyers to enter at better price points.
Outlook for the Fall Market
Looking ahead, Realtors expect a cautious but active fall market in Mississauga. Stable rates, combined with seasonal demand, could keep momentum strong through the end of the year.
“I expect the first-time buyer segment will continue to drive the market,” Lee predicts. “If interest rates remain stable, confidence will build, and that will push more transactions.”
He notes that inventory levels will play a big role. If too many sellers rush to list, buyers may gain negotiating power again. On the other hand, if supply stays limited, competition could intensify.
Industry surveys echo this cautious optimism. A recent poll of Ontario homebuyers found that nearly 70% of respondents plan to start their search within the next 12 months, with affordability being their top concern.
The Bigger Picture
Mississauga’s market is reflecting a national trend. Across Canada, smaller condo markets and mid-sized cities are seeing renewed first-time buyer activity, while luxury and high-end detached segments remain slower.
Economists suggest that as younger Canadians continue to form households and immigration remains strong, demand for entry-level housing will remain robust even if higher interest rates keep the upper tiers more balanced.
“People will always need housing,” says Khan. “The real question is whether they’re comfortable buying now or waiting. Right now, more of them are saying they’re ready.”
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