Sales were up all across the Montreal metropolitan area in January 2016. The new year started with a bang as 2,153 residences were sold in the month. This was 12% higher than in January 2015. While January is traditionally a slower month for real estate markets across the country, this flashy start to a new year could indicate a heating up of the Montreal market in the months ahead.
Single Family Homes Popular, But Prices Holding Steady
Often, when a particular category of home becomes increasingly sought after, the proven market forces of supply and demand exert pressure on home prices, causing them to rise in proportion to the increased demand. However, real estate is a complex market with a lot of variables affecting prices. So far, the increased demand for single family detached houses across Montreal hasn’t caused excessive price increases across the Greater Montreal area. The sharp increases have been limited to the Island of Montreal proper.
Demand for single family detached homes is certainly up across the Greater Montreal area. This is where the most year-over-year sales growth has been seen, with a 14% increase in the segment. Across the entire region, the average price has increased by only 1%, to $280,000. On the Island of Montreal itself, however, prices have climbed much higher: a single family detached home now averages $412,600, which is a year-over-year increase of 12%.
Vandreuil-Soulanges Leads Neighbourhood Growth
The sales growth in Vandreuil-Soulanges significantly outpaced growth in the city as a whole. Sales in the neighbourhood increased by 24%, double the rate of growth seen in the rest of the city. Prices in the neighbourhood have also increased, but not as much as in other parts of Montreal. The average price in the area increased by 3% to $277,000.
The South Shore neighbourhood bucked the trend established across the rest of the city and actually saw a decrease in the average price of homes sold. The average price of single family homes here dropped by 2% to $265,000. Condos were also down in the area by 1%, with the new South Shore average condo cost coming in at $197,110.
It is also worth noting that the city as a whole has seen a decrease in the number of properties listed for sale. January 2016 saw 3% fewer homes available for purchase in Montreal.