Last Updated on October 24, 2023 by Neil Sharma
Greater Montreal’s housing market has been on fire of late but sales slipped 3% year-over-year last month—the first time that’s happened in six years—according to data from the Quebec Professional Association of Real Estate Brokers (QPAREB).
The Island of Montreal, however, saw sales rise by 6% during the period, , for which sales upsurged by 16%.
“Condominium sales compensated for the decrease in single-family home sales in February. The drop in inventory of properties for sale and the skyrocketing prices of single-family homes partly explain the increase in condominium and plex [multi-family] transactions,” Charles Brant, director of market analysis at the QPAREB, said in a release. “The gap between the median price of condominiums in the downtown Montreal area (decreasing) and the median price of condos in the suburbs (sharply increasing) is narrowing significantly.”
According to the board’s data, condo sales declined by 32% in Saint-Jean-sur-Richelieu, 14% in Laval, 10% in Vaudreuil-Soulanges. 8% on the South Shore, and by 3% on the North Shore.
The QPAREB describes Montreal as a seller’s market, with average prices maintaining their upward trajectory because of rampant multiple offer situations that have resulted in overbidding. The median price of a single-family home in the city rose by 28% year-over-year in February to $460,000 from $360,000, and condo prices surged by 24% to $340,000 from $275,000 in February 2020, while multi-family buildings (between two and five units) saw a 9% increase to $650,000 from $599,000.
Active listings in Montreal decreased by 26% last month to 11,355 from 15,308 in February 2020, while new listings fell by 5% to 6,253 from 6,608.
George Macris, mortgage broker and owner of Dominion Lending Centres Elite Finance in Montreal, says the city’s housing market isn’t showing any signs of cooling, and he anticipates “a few more good years.”
“We’re catching up to the B.C. and Ontario markets,” he told CREW. “Montreal is the place to be, as evidenced by the low supply and high demand. There are more people than ever trying to get into real estate.”
Prices are rising so fast, in fact, that Macris has to frequently adjust his first-time buyer clients’ preapprovals because properties are selling 5-10% over asking.
“I had a client recently place an offer $80,000 over listing price and after multiple offers they were able to secure the property. From the feedback I’m getting from clients, it seems that every property listed will receive multiple offers within a few days of the property being listed. I also have had a few clients decide to hold off until next year.”
Neil Sharma is the Editor-In-Chief of Canadian Real Estate Wealth and Real Estate Professional. As a journalist, he has covered Canada’s housing market for the Toronto Star, Toronto Sun, National Post, and other publications, specializing in everything from market trends to mortgage and investment advice. He can be reached at neil@crewmedia.ca.
