Montreal’s residential real estate is presently a seller’s market, characterized by a highly competitive buying atmosphere, above-average price growth, and diminished inventory. This is especially true in the single family home segment, where bidding wars are increasingly common and offers are more likely to be accepted above the original asking price.
TL;DR: We ranked Montreal’s residential neighborhoods according to SNLR ratio, which determines how competitive/hot a market is.
We crunched Centris data from the last quarter of 2018 to rank market conditions in various Montreal neighborhoods, based on their sales-to new-listing-ratios.
The following neighborhoods were classified as seller’s markets in Q4 2018, according to their SNLR ratios:
The higher the SNLR ratio, the “hotter” the neighborhood.
|Property Type||Neighborhood||SNLR||Median Price*|
|Single Family Homes||Pointe Claire||149%||$454,000|
|Villeray / St Michel / Parc-Ex||81%||$428,500|
|Mercier / Hochelaga||61%||$359,900|
|Mercier / Hochelaga||71%||$244,000|
|Villeray / St Michel / Parc-Ex||65%||$309,900|
*All statistics are based on Centris data for the fourth quarter of 2018
What is an SNLR ratio, and how does it determine market conditions?
Sales-to-New-Listings-Ratio (SNLR) is a common metric used to determine whether a real estate market is advantageous to sellers or buyers. It compares the number of new properties listed for sale with the number of homes sold within the same timeframe.2
The Canadian real estate association classifies a market with an SNLR of 0-39% as a buyer’s market. In this scenario inventory exceeds demand, which typically increases buyers’ bargaining power. Sellers in these markets may find that it takes longer to sell their property, and price growth is likely to stall or even decrease.
A market with an SNLR between 40%-60% is considered a balanced market.
A high SNLR over 60% is indicative of a seller’s market. In this scenario, several buyers compete for limited inventory, which pushes up prices and increases the occurrence of bidding wars. In this type of market, sellers hold more bargaining power than buyers do.
This article, Hottest Seller’s Markets For Homes And Condominiums: Montreal Real Estate, appeared first on Shupilov News.