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Hot Weather and Hot Montreal Real Estate Market Arrive Together

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Hot Weather and Hot Montreal Real Estate Market Arrive Together
2 min. read

Summer has arrived in Montreal, and the Montreal real estate market has heated up to meet the weather. In the month of May, sales were up 15% compared to 2016, with a total of 5,057 homes sold in the greater Montreal area over the month.

Sales growth has been stronger in some portions of the city than others. On the Island of Montreal proper, the sales figures rose 22% to 2,065 sales made for the month of May, and in Vaudreiul-Soulanges, the growth was 25% to 274 sales. In Laval, by contrast, sales growth was only half of what it was on the Island, climbing 11% to 527.

Total Inventory Dropping as Market Picks Up

As sales pick up in Montreal, the overall availability of housing is dropping somewhat. The total number of listings available on the market dropped by the exact same percentage that sales increased by – 15%. This left 28,137 homes for sale at the end of May.

Unsurprisingly, listings have been dropping in neighborhoods in proportion to the increase in sales seen in those parts of the city. The overall number of listings available at the end of the month on the Island of Montreal dropped 18%, leaving 10,912 homes for buyers to choose from.

Price Increases Driven Largely by Single-Family Homes and Plexes

The median price of a home in Montreal has been climbing for some time, and in May it was clear that the growth was largely driven by the single-family and plex markets. Single-family homes have increased 6% in price to a median of $319,000, while plexes have grown 5% to $480,000. The growth in the condo market has been much more modest, with prices only growing 1% to a new median of $243,000. Prices are highest on the Island of Montreal with a median single-family price of $442,000 for May (4% growth over last year), and in Laval, with a median price of $320,000. The North and South Shore neighborhoods saw stronger growth in condo prices than some neighborhoods, with the current median of $180,000 representing 6% growth in the North Shore, and $205,000 indicating 9% growth in the South Shore.

Summer has started off hot in Montreal, and the current trends show no signs of that abating any time soon. Although the recent announcement by the Bank of Canada to raise interest rates may cool the real estate market somewhat, it seems unlikely to have as drastic an effect on the Montreal market as compared to centres like Vancouver and Toronto.

 
 

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