Slow Start to the Montréal Area Real Estate Market

Slow Start to the Montréal Area Real Estate Market 

Île-des-Sœurs, February 9, 2011
– There were 2,477 MLS® sales transactions in the Montréal Metropolitan Area in January 2011, a 10 per cent decrease compared to January 2010, according to the Greater Montréal Real Estate Board (GMREB). Despite a decrease in sales, prices continued their upward trend.

“It’s important to remember that in 2010, the year started off strong due to the anticipated increase in mortgage interest rates. In that way, it’s no surprise that January 2011 sales are down compared to January 2010,” said Diane Ménard, Vice President of the GMREB Board of Directors. “We’re predicting a slight decrease in residential sales in 2011, which is even more reason we’re not surprised by January’s sales,” she added.

In terms of prices, they continued to increase in January 2011. Both single-family homes and plexes registered a 7 per cent increase in median price, reaching $252,000 and $390,000, respectively. The median price of condominiums posted a more modest increase of 4 per cent to reach $210,000.

“When we look at property prices elsewhere in Canada, we see that Montréal is still one of the country’s most affordable large cities. For example, in Calgary, a city that also publishes median prices, the median price of single-family homes was $390,000, which is 55 per cent higher than Montréal’s median price of $252,000,” said Ms. Ménard.

All property categories posted a decrease in sales in January 2011 in the Montréal area. Sales of single-family homes decreased by 11 per cent compared to January 2010, sales of condominiums decreased by 8 per cent and plex sales fell by 9 per cent. Even though the 782 condominiums sold in January 2011 did not surpass the sales level of January 2010, this was still the second best January on record for condominium sales, which demonstrates the growing demand for this type of property.

Geographically, the Island of Montréal and Laval both posted a slight 3 per cent decrease in sales in January 2011 compared to January 2010. Sales in the Vaudreuil-Soulanges area decreased by 7 per cent, while sales on the North Shore fell by 11 per cent. Finally, the South Shore registered a sharper decrease in real estate activity, as sales fell by 22 per cent.

As at January 31, 2011, the number of active listings on the MLS® system increased by 13 per cent in comparison with the same date last year.

“If you take into consideration that sales have decreased and listings have increased, it shows that market conditions are softening in Montréal. Even though the market continues to favour sellers, we can see that we’re slowly moving towards a balanced market,” said Diane Ménard.

Nasser Khodayari

Nasser Khodayari

Real Estate Broker
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