Montréal CMA records increase in sales of residential properties: QPAREB

Statistics released by the Québec Professional Association of Real Estate Brokers (QPAREB) have revealed that the Montréal CMA has recorded an increase in sales of residential properties since June 2021.

Residential real estate market statistics for July 2023 have been released by the Québec Professional Association of Real Estate Brokers (QPAREB) which pertain to the Montréal Census Metropolitan Area (CMA) and derive from the Centris provincial database maintained by real estate brokers.

In the month of July 2023, the number of residential sales in the Montréal CMA totaled 3,098. This reflects a 1 per cent growth, equating to 45 more transactions, in comparison to the corresponding period of the previous year. Notably, this level of transactional activity not only aligns with 2022 but also surpasses the historical average for this seasonal timeframe.

“After a disappointing month of June, transaction activity is picking up in the Montréal CMA. For the first time since the summer of 2021, it is the Island of Montréal that is pushing activity in the metropolis, driven by sales of small income properties and single-family homes. It is true that buyers particularly stayed away from these categories of more expensive properties last year at this period due to the sharp rise in interest rates. However, the recorded jump in sales brings activity back to a level that exceeds the historical average for a month of July on the island, all categories combined”, notes Charles Brant, QPAREB market analysis director.

“Clearly, some buyers are less affected by the rise in interest rates. The majority of buyers currently in the market can count on income or equity from their real estate holdings, with values compared to last year. The many newcomers with immigration status allowing them to buy a property in Québec are also joining the ranks of this category of buyers with good purchasing power.”

In the realm of July’s real estate highlights, the sales dynamics of residential properties within the primary metropolitan areas of the Montréal al Census Metropolitan Area (CMA) reveal three distinct trends. Specifically, the North Shore and South Shore of Montréal experienced declines of thirteen per cent and two per cent in sales, respectively. Conversely, Vaudreuil-Soulanges and Laval observed slight upticks of three per cent and five per cent in sales, with transaction figures of 132 and 285, respectively. Notably, both the Island of Montreal and Saint-Jean-sur-Richelieu exhibited notable increases of twelve per cent and twenty-three per cent, boasting transaction counts of 1,198 and 81, respectively, as compared to the corresponding period of the preceding year.

When examining various property categories, it is evident that condominiums were the sole segment to encounter a decline in sales, registering a decrease of four per cent with a total of 1,130 transactions. In contrast, single-family homes experienced a positive trend, with transactions amounting to 1,649, signifying a three per cent increase. Similarly, small income properties displayed a noteworthy surge of fifteen per cent, totaling 317 sales, when juxtaposed with the same period in the previous year.

Turning to the realm of active listings, July witnessed a twenty per cent surge as compared to the previous year, culminating in a total of 14,820 listings in the Montréal CMA. This augmentation in listings was observable across all property categories, with single-family homes and condominiums standing out due to more pronounced increases of twenty-four per cent and twenty-two per cent, respectively. However, it is crucial to acknowledge that, in alignment with the trend observed since the start of spring, the available property inventory has diminished in comparison to June (with a decrease of 320 listings compared to June 2023).

In the context of stabilizing transaction activity, there is an observable trend toward longer average selling times. Specifically, the average selling time for small income properties was seventy-one days, marking an extension of twenty-eight days in comparison to the same period the previous year. Condominiums and single-family homes similarly exhibited extended average selling times of twenty-three days (totaling fifty-six days) and twenty-one days (totaling forty-six days), respectively.

Regarding median prices, plexes were valued at a median price of $735,000 in July, indicating a decrease of six per cent from the previous year. However, stability was noted in the median prices of both condominiums and single-family homes. Condominiums, for instance, maintained a median price of $395,000, signifying no variation (zero per cent change) over the given period. On the other hand, single-family homes commanded a median price of $555,000, indicating a modest increase of one per cent.

When examining median price shifts on an annual basis, single-family homes in the principal metropolitan areas of the Montréal CMA exhibited fluctuations ranging from six per cent to negative four per cent. Laval and the South Shore of Montréal experienced a median price decline of four per cent. Saint-Jean-sur-Richelieu’s median price experienced a more moderate reduction of two per cent. In contrast, the North Shore of Montréal, Vaudreuil-Soulanges, and the Island of Montréal emerged as areas with rising median prices relative to the previous year.

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