Real estate: slow sales, rising prices in Montreal
As the decline in real estate sales continues in the census metropolitan area (CMA) of Montreal, prices , they continue to rise, reveal data from the Association professionnelle des courtiers immobiliers du Québec (APCIQ) for the month of February.
The decline in real estate activity continued during the month of February, still limited by a particularly low number of active listings on the market, indicates the director of the Service de l'analyse du marché at the APCIQ, Charles Brant.
In fact, there were a total of 4,399 residential transactions concluded in the Montreal CMA, which which represents a decrease of 12% compared to the same period in 2021.
With the exception of Saint-Jean-sur-Richelieu, which recorded a 17% gain, most sectors of the CMA experienced a slowdown in February. This is the case for the island of Montreal (-10%), the South Shore (-13%), and Laval (-14%). The North Shore, for its part, experienced the most significant decline, with -20% for the period.
The APCIQ points out, however, that the relative weakness in the number of transactions is linked, among other things, to the extraordinary activity of February 2021. The figures are within the average number of transactions for February since 2016, which is around 4,400.
Rise in prices
Median property prices continued their sustained growth in February. Indeed, single-family homes saw their median price climb to $550,000, a 20% increase compared to February 2021, and a slight gain compared to January 2022 ($541,000).
The median price of small income properties stood at $765,000 in February 2022, a gain of 16% compared to February 2021, and a substantial increase compared to last month ($712 500). As for condominiums, they recorded a 16% increase in their median price, reaching $395,000 in February. The median price had reached $381,000 in January 2022.
“We are seeing a moderation in the downward trend in properties for sale, but the strong market imbalance, in favor of sellers, continues. The pressure on prices therefore remains high,” notes Charles Brant.
On March 2, the Bank of Canada began a campaign to raise the key interest rate, a first since 2018. According to Mr. Brant, the move will “quite likely” mark the beginning of a moderation in excess demand for properties for the remainder of the year and a gradual easing in the number and intensity of overbidding.
The most recent statistics for the residential real estate market in the Montreal CMA are based on the provincial Centris database of real estate brokers.