Real Estate Market Continues to Rebalance in September: QPAREB

According to the Québec Professional Association of Real Estate Brokers (QPAREB), a rebalancing of the real estate market continues in September.

The Québec Professional Association of Real Estate Brokers (QPAREB) recently released its residential real estate market statistics for the month of September. The most recent market statistics for the Montréal Census Metropolitan Area (CMA) are based on the real estate brokers’ Centris provincial database.

According to QPAREB, residential sales in the Montréal CMA territory stood at 2,738 in September, representing an increase of 9 per cent (or 224 transactions) compared to the same time period last year. It was noted, however, that transactional activity is lower than the historic average for this time of year.

“The Montréal CMA market continued to stabilize in September, with transactional activity comparable to that of a very quiet month of August. If sales are up compared to same period last year, it is because 12 months ago activity had started to drop towards an all-time low. The same phenomenon is observed in the mainly positive variation in prices,” said Charles Brant, QPAREB market analysis director.

“While the economic context is deteriorating against a backdrop of persistent inflation, the new wave of interest rate hikes at the start of summer translated into a more cautious approach by buyers in September. Household purchasing power remains eroded by inflation and the savings cushion accumulated during the pandemic is rapidly depleting. For their part, sellers are trying to cash in their added value while market conditions, supported by a solid migratory flow, are still favourable to them. Good marketing at the right price will be more and more critical in attracting a motivated buyer pool which, however, will most likely be smaller and more selective. This is particularly the case for single-family homes, as prices have almost reached the last peak of 2022.”

September highlights include the following.

The QPAREB noted that residential property sales are rising in all of the main metropolitan areas of the Montréal CMA. The Island of Montréal and Saint-Jean-sur-Richelieu had  increases of 18 per cent and 14 per cent compared to the same period last year.

Vaudreuil-Soulanges, the North Shore of Montréal and the South Shore of Montréal had increases of 11 per cent, 7 per cent and 7 per cent in sales. Laval posted a 10 per cent drop.

It was also noted that transactional activity per property category varied between +5 per cent and +13 per cent for the period.

With a total of 1,391 transactions, the number of single-family homes sold was up 5 per cent compared to the same period last year and condominiums and small income properties both grew by 13 per cent.

September saw an increase in active listings, according to QPAREB, which was up 10 per cent from a year ago to reach a total of 16,398 in the Montréal CMA. They also noted, however,  that the inventory of available properties has reached a level which has not been seen since the fall of 2019.

The QPAREB revealed that the average selling time for small income properties was 67 days, which is equivalent to 17 days longer than the same period last year. Condominiums and single-family homes took 58 days and 46 days to sell which represents 14 more days for condominiums and 12 more days for single-family homes.

According to the statistics, all median prices are increasing when compared to those in September 2022. The median price of a single-family home was $549,000, which represents an increase of 3 per cent. Condominiums saw an increase of 6 per cent for the period with a median price of $402,000 and plexes sold at a median price of $730,000, a 7 per cent increase compared to last year.

Small income properties and condominiums experienced slight positive variations compared to August and the median price of single-family homes fell slightly.

On an annual basis, the median prices for single-family homes in the main metropolitan areas of the Montréal CMA varied between -4 per cent and +11 per cent, according to the QPAREB.

The decline represents roughly 4 per cent and 1 per cent in Vaudreuil-Soulanges and the South Shore of Montréal. There was also a rise in the median price for Laval (+4 per cent) and the North Shore of Montréal (+4 per cent). The main metropolitan areas of Saint-Jean-sur-Richelieu (+10 per cent) and the Island of Montréal (+11 per cent) had more marked median price increases in comparison to last year.

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