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CMHC: Montreal’s Economy and Housing Market Shows Strong Growth

Despite rising costs, Montrealers appear to be comfortable with housing debt.

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Montreal’s strong economy and robust job market has been elevating consumer purchasing power in Montreal and Quebec City, according to the Canada Mortgage and Housing Corporation.

TL;DR: The province of Quebec recorded low mortgage delinquency rates in 2018, and a high proportions of young Montrealers already own a home or intend to buy one within five years.

Mortgage delinquency rates are low at 0.29% in Montreal and 0.24% in Québec as of Q3 2018.

“The Montreal and Québec areas have shown strong economic growth and particularly vibrant job markets in the last two years. This certainly contributed to the financial stability of households and supported their ability to make their mortgage payments on time (or less than 90 days late),” CMHC said.

Average prices on Montreal Island are currently recorded at $319,500 (appreciation rate of +2%) for condominiums, $495,000 (+6%) for single family homes, and $565,000 (+5%)for ‘plexes.

In Montreal, the rate stood at 0.23% for mortgages under $100,000, and 0.30% for mortgages over $400,000.

Meanwhile, mortgage delinquency in the Québec CMA was at 0.13% for accounts less than $100,000, and 0.63% for accounts of $400,000 and higher.

Equifax data from Q3 2018 indicated that nearly nine out of 10 mortgage holders in Montreal and Québec were working aged Canadians, between 25 to 64 years of age.

29% of Montrealers are current mortgage holders, compared to 31% in Québec City.

The average home in Montreal cost $348,700 in January 2019 and December 2018. Based on this benchmark price, the required household income required to carry an average mortgage would be $47,566.

According to the Québec Federation of Real Estate Board’s latest survey on millennials homeownership patterns 26% of young Montrealers in the 18-34 age group intended to buy a property within the next five years, this rate rises to 50% among 18-34 year olds.

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This article, CMHC: Montreal’s Economy and Housing Market Shows Strong Growth, appeared first on Shupilov News.


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