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Montreal Real Estate Market Bucks the National Trend and Sees Ongoing Growth in 2018

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Montreal Real Estate Market Bucks the National Trend and Sees Ongoing Growth in 2018

Many of the country’s real estate markets are currently working their way through readjustments in the wake of regulatory changes and increasing interest rates. Montreal appears to be bucking the trend. Real estate has long been much more affordable in Montreal than in the other two largest cities in Canada. This perhaps provides the Montreal real estate market with insulation from the effects that higher interest rates and stricter borrowing guidelines are having on other cities.

In the month of May, there were 5,303 sales in the Montreal metropolitan area. This was 1% more than the sales made during the month last year. When viewing the year-to-date sales, Montreal’s performance appears even stronger. The 22,999 homes sold throughout the first five months of the year is 6% higher than the number of sales made over the same period in 2017.

Active Listings Are Down and Contributing to Rising Prices

The total number of listings in the city of Montreal is down compared to last year. There were 24,501 homes for sale in the Greater Montreal Area at the end of the month. This was 16% more than were available last May.

New listings have also been down throughout the first half of 2018. There were 6,387 homes listed for sale in May, which was 1% less than last year. Year-to-date new listings are also down, with the current total sitting at 34,058. This is 5% fewer when compared to that same period in 2017. It’s also worth noting that properties are staying on the market for fewer days. The number of average days on market dropped by 10 to 75 for detached homes and by 11 to 97 for condos.

Prices Up Across Categories

The median prices of homes in the city are up across all types of property. For the month of May, median prices rose by 3% for single family homes to a new median of $325,000. Condos rose by double that margin to a new median price of $257,000. Plexes increased by the widest margin, with the new median of $520,000 representing a 9% year-over-year increase.

Montreal remains an interesting case in Canadian real estate. While other markets have been cooled by the changes seen in 2018, Montreal’s market seems to be picking up. This is most likely due to the fact that previously it was being undervalued compared to similarly sized cities across the country. Despite increasing sales activity and slightly rising prices, Montreal still appears to offer some of the best value for money anywhere in Canadian real estate.

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