Montréal Real Estate Market: Sales Reach Record-Breaking 2007 Levels
Île-des-Sœurs, November 10, 2009 – October 2009 sales in Montréal Metropolitan Area hit the same level as sales in October 2007, the year that broke all records. According to the Greater Montréal Real Estate Board’s MLS ® statistics, there were 3,543 sales transactions in the Montréal area in October 2009, a 23 per cent increase compared to October 2008 and a 3 per cent increase compared to October 2007.
“It’s important to remember that the official beginning of the recession was in October 2008, and sales in the Montréal area at that time were down 17 per cent compared to October 2007,” said Michel Beauséjour, FCA, Chief Executive Officer of the GMREB. “We should then approach the October 2009 data cautiously, because obviously the increase in sales this October was amplified by the market’s poor performance last year. It’s better to compare with October 2007 since it was the best October on record,” he added.
In terms of sales, condominiums led the way with a 28 per cent increase in October 2009 compared to October 2008 and a 12 per cent increase compared to October 2007. Single-family home and plex sales remained stable compared to October 2007, but increased by 23 and 16 per cent, respectively, compared to October 2008.
As for prices, all three property categories registered a 6 per cent increase in median price in October 2009 compared to October 2008. In the Montréal area, the median price of a single-family home reached $240,000, while that of a condominium reached $195,000 and that of a plex reached $350,000.
“Property prices have continued to increase despite the drop in sales in October 2008. That situation has not changed today and prices continue to increase, once again reaffirming that real estate remains a good investment in the Montréal area,” added Michel Beauséjour.
Geographically, the five main areas in the Montréal region met – and even exceeded – October 2007 sales figures with the exception of the North Shore, which posted a 13 per cent increase in sales compared to October 2008 but a 13 per cent decrease compared to October 2007. Sales in Laval increased by 35 per cent in October 2009 compared to October 2008 and by 29 per cent compared to 2007. The Island of Montréal, the South Shore and the Vaudreuil-Soulanges area registered increases of 24, 21 and 51 per cent, respectively, compared to October 2008, while they increased by 3, 9 and 4 per cent, respectively, compared to October 2007.
As at October 31, 2009, the number of active listings on the MLS ® system decreased by 10 per cent in comparison with the same date last year.