Sellers still have the upper hand in the Greater Montreal residential real estate market as sales prices remain strong despite a slowdown in real estate transactions in November.
According to the Professional Association of Real Estate Agents of Quebec (APCIQ), residential property sales recorded a decline of 1% compared to the month of November 2022, representing the second lowest level of activity for this period of the year since 2000.
“Unlike other major Canadian metropolitan areas such as Toronto and Vancouver, the residential real estate market in the Montreal region is not experiencing a rapid increase in the number of properties coming back onto the market,” noted Charles Brant, head of market analysis, Property Services APCIQ.
The number of real estate transactions is declining in almost all sectors of the CMA (Census Metropolitan Area) of Montreal, with the exception of the island, where sales increased by 7% between November 2022 and 2023.
Laval and Montreal’s North Shore and South Shore were less attractive to buyers, with declines of 1%, 5% and 5%, respectively. The decline was even more pronounced in Saint-Jean-sur-Richelieu (-14%) and Vaudreuil-Soulanges (19%).
Small investment properties were particularly in demand, with sales increasing by 36% in November compared to the previous year. Purchases of condominiums barely changed (+1%), while purchases of single-family homes fell by 8%.
Average prices are all rising, regardless of the property category on the market. The average price for condominiums was $395,275 (+4%), that of single-family homes was $539,700 (+4%) and that of multi-family homes was $731,250 (+2%).
A similar trend in Quebec
For the first time in four months, Quebec’s real estate market experienced some slowdown, with transactions down 5% in November compared to November 2022.
“Activity in the Quebec market is showing signs of slowing. Although the price of single-family homes is still quite affordable, it has actually reached a threshold that can make it more difficult for households to qualify for a loan,” Mr. Brant emphasized.
Only the Quebec South Coast sector recorded a 2% increase in sales compared to November 2022. For their part, the Quebec agglomeration and the northern periphery suffered declines of 5% and 15%, respectively.
Smaller properties were less in demand this month, with sales down 11%, while single-family homes fell 7%. Conversely, co-ownership transactions increased by 1%.
Mr Brant also pointed out that co-ownership associations are particularly popular in this area, which is “experiencing great enthusiasm from both young buyers and a group of experienced buyers who are more established around retirement age”.
This is also reflected in the average price of this property category, which increased by 16% to $259,000 in November 2023. The price of single-family homes rose 4%, settling at $360,500, while the price of multifamily homes fell 1% ($389,000).
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Originally posted 2023-12-06 20:24:34.