According to Centris’ annual statistical reports, and the predictions of industry specialists, here are 10 Real Estate Trend to expect in 2015.
1. A balanced, buyers market is forecasted, with a high inventory and low demand.
2. Interest Rates will increase slightly, but only in the second half of 2015.
3. Residential Sales Prices jump from an average price of $329,300 in 2014 to $332,600 in 2015. Historically, Montrealers have preferred renting over owning, but new favorable financing conditions have led to more condo purchases and this trend is expected to continue.
4. Inventory has risen steadily and is expected to continue rising in 2015. Particularly in the condo market where overbuilding has led to a surplus and pre-sales have slowed down as the market absorbs the new inventory.
5. Urbanization continues:
Young adults increasingly choose to live closer to work in the city. Baby boomers also move back into the urban core, looking to downsize but not necessarily downscale, and to enjoy the thrills of an urban lifestyle after their children move out. The city core changes as a result of this urbanization, with more residential projects and inner-city densification. Services such as urban grocery stores, gyms and salons will pop up in the downtown areas that cater to these new entrants.
6. An increase in demand for multi-use and repurposed buildings is expected in 2015. Developers lock in a stable income by adding retail and service options to their residential units, and residential options to their commercial ones. The convergence of commercial and residential developments will be popularized in the coming years, driven by urbanization and a need to maximize the return value on real estate holdings.
7. Montreal’s Office Market is expected to coast. New developments are in the works such as the Deloitte Tower, the Quartier Evolution Business Park, and a major office near the Bell center that will cover 4.5 million square feet when finished in the next 15 years. In 2015 Montreal’s office market should stabilize, with a growth in e-commerce and IT related industries, and a higher demand for loft spaces in trendy neighbourhoods.
8. Infrastructural Improvements in the Greater Montreal Area (GMA) are projected to improve the real estate climate. The government has invested 5 billion into renovating the Champlain Bridge, which will be completed by 2018. Inner city transit is also increasingly accessible, driving demand for offices in the downtown core.
9. The rise of “Super Hospitals” (such as Mcgill’s new Health Center) increase the economy and employment levels, creating development opportunities as older facilities are vacated and newly employed healthcare workers move into the surrounding areas.
10. Political uncertainty is not considered to be an issue in 2015. Whilst it held the market back in 2014, the economic and political outlook is positive for this coming year.
Canadian Mortgage and Housing Corporation
2015 Real Estate Trends
Canadian Market Outlook 2015