Real estate market in Montreal


In July, residential sales on the Island of Montréal jumped 21% compared to the same period last year. Across Greater Montréal, transactions increased 16%
This month of July confirms the strength of the real estate market interviewed since the beginning of the year in Montreal. Between January and July 2017, cumulative sales of single-family homes, condominiums and plexes increased by 11% in Montréal (+ 8% for the metropolitan area), compared with the same data reported during the previous year. Period covering the months of January to July 2016.
While central boroughs experienced marked increases, such as Ville-Marie (+ 27%), with 1,065 transactions during the first seven months of the year or Plateau-Mont-Royal (+ 17%), (+ 15%), Villeray-Saint-Michel-Parc-Extension (+ 14%), the number of women in the neighborhood According to data provided by the Greater Montréal Real Estate Board.
Conversely, only the boroughs of Ahuntsic-Cartierville (-4%) and Southwest (-2%) experienced a negative change, in particular, for the Southwest, due to the lack of properties put on the market.
While condo sales are the most favored (+ 24% in July), their prices have also been revised upwards. On the Island of Montréal, the median price of a condominium sold in 2017 (January to July) is valued at $ 290,000 (+ 4%). That of a plex, which includes two to five units, is estimated at $ 510,000 (+ 5%).
The median price of a single-family home also increased by 8% to $ 442,000. In July alone, this price jumped 13% compared to last year.
Laval and the North Shore also benefited from this growth, with a July sales increase of 14% compared to July 2016. On the South Shore side, transactions increased by 6%.
In July 2017, 3,075 transactions were concluded. This is the most active July in eight years.
"Excellent business conditions"
To explain this increase, the excellent shape of the labor market in the province is highlighted. With an unemployment rate in Québec of 5.8%, a record since 1976, "a feeling of confidence has settled," assures Paul Cardinal, director of the department of market analysis at the Quebec Federation of Real Estate Boards (QFREB).
"It's going beyond anything we've anticipated," he says. As the job market is on fire and interest rates on mortgages are still at a historic low, everything is pointing to an excellent housing market. "
Foreigners would arrive timidly
Another factor to justify this strong growth of the Montreal real estate market is the increasing presence of foreign investors, whose impact is still limited. While Toronto and Vancouver have introduced a 15% tax for non-resident buyers to try to stop real estate inflation, these effects are slowly beginning to be felt on the Montreal side, believes the FCIQ.
"The statistics are still approximate, but more and more foreigners are turning to the purchase of a property in Montreal," says Paul Cardinal, adding that these transactions currently represent only between 1.5 And 2% of total sales.
"There are two categories of foreign investors," he said. More and more Chinese buy single-family homes at high prices in Ville-Mont-Royal or Westmount. They are just behind the Americans and the French, who are looking for condos in the downtown area and Griffintown, for investment purposes or for housing their children. "
Still expected
Despite the Bank of Canada's recent interest rate hike, which will increase the cost of borrowing, this property strength is expected to continue in the coming months.
"The employment situation is more important and counts more in the balance of reflection of the buyers. In the short term, this increase, and even if a second could occur by the end of the year, should not have a negative impact, "predicts Paul Cardinal, who even sees a positive effect for the real estate market.
"It's been a long time that consumers are told that rates will rise," he adds. It can be a click and have the opposite effect. People could rush to buy to avoid paying for a more expensive property, with higher rates. "
The supply of properties is, however, increasingly reduced. It decreased by 15% compared to July 2016, according to the Centris system, used by brokers.
Sales by sector (January to July 2017 compared to the same period in 2016):
  • Ile-des-Sœurs : +31%
  • Ville-Marie : +27%
  • Saint-Laurent : +22%
  • Plateau-Mont-Royal : +17%
  • Westmount : +15%
  • Pointe est (Montréal-Nord, Pointe-aux-Trembles, Rivière-des-Prairies) : +15%
  • Côte-des-Neiges-Notre-Dame-de-Grâce : +14%
  • Villeray-Saint-Michel-Parc-Extension : +14%
  • Anjou/Saint-Léonard : +14%
  • Mercier-Hochelaga-Maisonneuve : +12%
  • Rosemont-La Petite-Patrie : +12%
  • Lachine/LaSalle : +10%
  • Nord de l'Ouest de l'île : +6%
  • Ville-Mont-Royal : +5%
  • Sud de l'Ouest de l'île : -1%
  • Sud-Ouest : -2%
  • Ahuntsic-Cartierville : -4%

(Chiffres Centris)