Montréal market stabilization continued in August: QPAREB

The latest residential real estate market data for August 2023 in the Montréal Census Metropolitan Area (CMA) has been unveiled by the Québec Professional Association of Real Estate Brokers (QPAREB). These statistics are derived from the Centris provincial database used by real estate brokers.

In August 2023, residential sales in the Montréal CMA amounted to 2,753, indicating an increase of 101 transactions compared to the corresponding period in the previous year, representing a growth of 4 per cent. This level of transactional activity aligns with the typical historical average for this time of the year.

“August is usually one of the least active months of the year. While August 2023 is no exception to the rule, the number of sales is in line with the historical average. Transactional activity is thus higher than that recorded last year at the same period. In the first part of 2022, the number of transactions began to be heavily impacted by the successive sharp increases in interest rates. The dynamic is similar for prices, which also compare favourably to those of August 2022, since they had started to fall for the same reasons,” said Charles Brant, QPAREB market analysis director.

“It is interesting to note that prices have not only recovered lost ground compared to the same period last year but are also maintaining levels close to the peak of 2022. This finding is more or less valid for all major metropolitan areas and property types. In a context where interest rates and prices both remain at high levels, a potential deterioration of the job market in the coming months could make this market stabilization more precarious.”

In August, residential property sales in the primary metropolitan areas of the Montréal Census Metropolitan Area (CMA) displayed distinct trends. The North Shore of Montréal recorded 607 sales, marking a 12 per cent decline in sales. Meanwhile, Laval with 256 sales and the South Shore of Montréal with 637 sales experienced stable sales figures, showing variations of 0 per cent and 1 per cent, respectively. Vaudreuil-Soulanges (130 sales) and Saint-Jean-sur-Richelieu (74 sales) witnessed growth in sales, with variations of 8 per cent and 10 per cent, respectively. Notably, the Island of Montreal stood out with 1,049 transactions, reflecting an impressive 18 per cent increase compared to the same period last year.

Transactional activity by property category demonstrated variations ranging from 1 per cent to 21 per cent for the period. Small income properties, with 294 transactions, saw a remarkable increase of 21 per cent compared to the same period last year. Single-family homes and condominiums, totaling 1,384 sales and 1,071 sales, respectively, experienced modest growth in sales, with increases of 1 per cent and 3 per cent, respectively.

Active listings across the Montréal CMA increased by 14 per cent from the previous year during the month of August, reaching a total of 15,159 listings. This uptick in listings was observed across all property categories, with single-family homes and condominiums experiencing more pronounced increases of 16 per cent and 15 per cent, respectively.

Transaction activity is showing signs of stabilization in a context of longer average selling times. Small income properties had an average selling time of 69 days, which is 22 days longer than the same period a year ago. Condominiums and single-family homes followed with selling times of 55 days and 49 days, respectively, indicating an increase of 16 days for condominiums and 18 days for single-family homes compared to the previous year.

In terms of median prices, all categories exhibited growth when compared to August 2022. The median price for a single-family home in August was $561,000, reflecting a 7 per cent increase. Plexes had a median price of $720,000, marking a 3 per cent increase for the period. Condominiums sold at a median price of $393,000, representing a 2 per cent increase compared to the previous year.

On a consecutive monthly basis, median prices remained stable compared to July. Small income properties and condominiums saw slight negative variations compared to the previous month (-2 per cent and -1 per cent, respectively), while the median price of single-family homes increased slightly (1 per cent).

When considering median prices on an annual basis, single-family homes in the main metropolitan areas of the Montréal CMA exhibited variations between -3 per cent and 14 per cent. Laval and Vaudreuil-Soulanges experienced declines of 3 per cent and 2 per cent, respectively. The South Shore and North Shore of Montréal saw more modest increases in median prices (4 per cent each). Notably, Saint-Jean-sur-Richelieu (11 per cent) and the Island of Montréal (14 per cent) stood out with more substantial median price increases compared to the previous year.