Île-des-Sœurs, January 11, 2011 – MLS® sales in the Montréal Metropolitan Area increased by 1 per cent in 2010 compared to 2009, with a total of 42,347 transactions, according to the Greater Montréal Real Estate Board, making 2010 the second best year on record in sales.
“There were two distinct phases in 2010. The first four months of the year were very active as many consumers bought their properties earlier than planned in order to avoid a possible increase in mortgage rates. Then the real estate market began to slow down in the following months and posted eight consecutive monthly sales decreases,” said Diane Ménard, Vice-President of the GMREB Board of Directors. “However, the strong start to 2010 compensated for the loss of momentum later on in the year, and the real estate market actually finished the year with a slightly higher number of transactions compared to 2009, but fewer transactions compared to the record set in 2007,” she added.
In terms of property categories, condominiums posted the largest increase in sales in 2010 and it was the only property category to register an increase in the Montréal area. The 12,668 condominiums sold surpassed by 7 per cent the previous record set in 2009. Sales of single-family homes and plexes remained relatively stable in 2010, decreasing slightly by 1 per cent compared to 2009.
Geographically, Laval and Vaudreuil-Soulanges registered the biggest increases in sales in 2010, as both areas posted a 4 per cent increase compared to 2009. The popularity of condominiums in these two areas contributed significantly to their strong performance, as condominium sales increased by 28 per cent in the Vaudreuil-Soulanges area and by 15 per cent in Laval. Strong condominium sales on the Island of Montréal (+7 per cent) and on the North Shore (+10 per cent) contributed to the vitality of these two areas, which ended the year with a 2 per cent increase in sales compared to 2009. The South Shore was the only area to register a decrease in sales compared to 2009, with a slight drop of 2 per cent.
“Condominiums were primarily responsible for the strong 2010 real estate market due undoubtedly to their affordability. It also leads us to believe that there were many first-time buyers on the market in 2010, as this property category is most popular with first-time buyers who also took advantage of low interest rates,” said Ms. Ménard.
As for prices, all three property categories finished the year with a higher median price than that of 2009. The median price of single-family homes increased by 7 per cent to reach $252,000, while that of condominiums increased by 8 per cent to reach $210,000 and that of plexes grew by 9 per cent to reach $380,000.