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Montreal’s Best Buyer’s and Seller’s Neighborhoods

To rank Montreal's buyer and seller's markets, we examined two market factors: months of inventory and inventory (average over 12 months).

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According to GMREB’s housing statistics Montreal is headed for a competitive home-buying season, with the market favouring sellers and prices on the rise. That being said, a more detailed picture of the market includes a range of variations based on neighborhoods, price points and property types.

Generally speaking, buyers searching for a home or condominium at a first time buyer’s price point – under $400,000, will face the most competition with fewer price cuts and less bargaining power.

The South end of West Island currently holds its place as Montreal’s top seller’s market, with single family homes between $300,000-$349,000 recording 1.7 months of inventory.

Those who can afford to pay more than $400,000 for a single family home or condo can expect more bargaining power and larger price cuts.

For example, it is a buyer’s market in the Downtown (Ville Marie) condominium market in the $500,000-$699,000 price range.

To rank Montreal’s buyer and seller’s markets, we examined two market factors: months of inventory and inventory (average over 12 months). Our data is sourced from QRFEB’s barometer for all four quarters of 2017.

Months of Inventory is the number of months needed to sell the entire inventory of properties for sale, calculated according to the pace of sales of the past 12 months. It is obtained by dividing the inventory by the average number of sales in the past 12 months, thereby eliminating seasonal fluctuations.

For example, if the number of months of inventory is 10, this means that it would take 10 months to sell the entire inventory of properties based on average sales volume per month in that particular market.

Inventory corresponds to the average number of active listings in the past 12 months.

Market conditions: Market conditions are determined primarily by the number of months of inventory.

  • If the number of months of inventory is less than 8, the market favours sellers (seller’s market). In such a context, price growth is generally high, and buyers have little bargaining power. Offers above asking price and bidding wars are common, since demand is higher than supply.
  • If the number of months of inventory is between 8-10, the market is considered balanced. In such a context, price growth is usually moderate.
  • If the number of months of inventory is greater than 10, the market favours buyers (buyer’s market). In such a context, price growth is usually low or negative. Supply outpaces demand, so buyers have more bargaining power and price drops are common.

The chart below shows the first two criteria and the median list price for each of the top five buyer’s and seller’s neighborhoods in the city.

Top Seller’s Markets

PRICE RANGE MONTHS OF INVENTORY INVENTORY PROPERTY TYPE
West Island South $300,000-$349,000 1.7 13 Single Family Home
Centre* $800,000-$999,000 2.4 18 Single Family Home
West Island North $300,000-$349,000 3 64 Single Family Home
Longueuil $250,000- 3.1 49 Single Family Home
South Shore $200,000- 3.5 161 Single Family Home

*Hamstead, Mont-Royal, Outremont, Westmount

Top Buyer’s Markets

PRICE RANGE MONTHS OF INVENTORY INVENTORY PROPERTY TYPE
North Shore $500,000+ 21.1 671 Single Family Home
Anjou / Saint Leonard $300,000+ 15.5 54 Condominium
Lachine / Lasalle $350,000+ 15 91 Condominium
Ville Marie $500,000-$699,000 12.4 210 Condominium
NDG/Montreal Ouest $200,000-$299,000 12.1 178 Condominium

 


This article, Montreal’s Best Buyer’s and Seller’s Neighborhoods, appeared first of Shupilov News.

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