Residential Real Estate Booming In Montreal

Residential sales in Montreal rose sharply last month compared to the same period in 2017, announces the Greater Montreal Real Estate Board.

In its monthly report released on Tuesday, the GMREB, which has more than 9,000 members, real estate brokers, said 2,598 transactions were completed in the past month, an increase of 13% over January 2017. is also the best month of January for eight years.

The six main sectors of Greater Montréal recorded increases in the number of transactions. The strongest gains were in Saint-Jean-sur-Richelieu and the South Shore, with growth of 31% and 22% respectively. Home sales on the Island of Montreal and Laval increased by 11%. The North Shore and Vaudreuil-Soulanges sectors saw their activity grow by 9% and 7% respectively.

A MORE FAVORABLE MARKET FOR SELLERS

Also in January, condominiums continued to be very popular, reports the GMREB. As a result, this housing category posted the strongest sales growth for the fourth month in a row, with a 19% increase. On the other hand, plex sales of two to five units grew by 15% and those of single-family homes gained 10%.

In terms of prices, the median price of single-family homes across the region was $ 307,250, up 6% from a year earlier. That of condominiums, it has increased by 3%, while half of the units were sold at more than 244 750 dollars. Note that plexes stood out, with a median price of $ 495,000, an increase of 8% in one year.

Finally, the number of listings for sale fell by 14% compared to January 2017, to 25,268.

“There are fewer and fewer properties for sale in the Montreal area and demand remains strong, so that the resale market is, overall, more and more favorable to sellers”, summarized in a statement Mathieu Cousineau , Chairman of the Board of Directors of the GMREB.

Expectations of future Canadian owners

Improving accessibility (fewer barriers and physical barriers) and the opportunity to make an investment are among the most important motivations for future homebuyers, from first-time buyers to homeowners. , former owners or existing homebuyers, according to a recent survey by the Canada Mortgage and Housing Corporation.

This survey, the first of its kind in the country, also shows that changes to the mortgage rules and possible interest rate increases are not among the factors that are considered decisive by potential homebuyers.

FEAR OF A RISE IN INTEREST RATES

It also reveals that in the absence of finding the “ideal home”, over 40% of first-time buyers and former homeowners would be willing to delay their purchase, while a similar proportion says they are willing to compromise on its size and location. The three groups of potential buyers say they favor the acquisition of an existing home “ready to be occupied”. Similarly, about 20% of first-time homeowners and former homeowners indicate that, second, they would opt for a new home. In addition, the study shows that the two steps most often completed a year or two before the purchase are the accumulation of the down payment and the choice of the type of dwelling.

Finally, the majority of potential buyers plan to obtain a mortgage to finance the purchase of their home, and about 25% of them say they would probably consider postponing the purchase if interest rates rise. This option is more prevalent among first time buyers than former homeowners and homebuyers.

Maria Concepción

Maria Concepción is a reporter for Billionaire365. After graduating from Dalhousie University as a English major, Mario got an internship at CHEX and worked on profiling local businesses. Maria was also was a columnist for the Huff Post Canada. Maria mostly covers business and community events.

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