Been having trouble finding a condo within your budget? You’re not the only one. Buyers across Montreal were first hit with the Mortgage Stress Test early this year, and are now hitting more roadblocks in their home-hunt, as the condo market heats up.
As of June, there were only 4332 active condo listings for sale on Centris. This number is down 9.56% since May and 27.72% when compared to the same time last year. The downward trend is continuing into July, perpetuated by a seller’s market in which demand outpaces supply. These market conditions lead to heightened competition among buyers, quicker sales, and increased chances of bidding wars.
As of June, Centris recorded only 5.2 “Months of Inventory” – the number of months needed to sell the entire inventory of properties for sale, based on average selling time. This is a slight increase since May, when the market hit its lowest point at 4.5 months on inventory. An up-tick in supply combined with a strong downward trend in number of sales often indicates that the “high-demand” condo inventory (for example, turn-key 2 bedroom condos under $400,000) have been sold off, with buyers now turning to off-market listings or other private sales to expand their own property search.
Now that Montreal has rapidly shifted to a sellers market, developers of new condo projects are struggling to keep up with the ever increasing demand.
Despite the large number of new development projects under way, it is expected that demand will continue to outpace condo supply in the near future as Montreal’s condo market continues to grow in popularity.
Tips for buying a condo in a competitive market
- Start your search with a pre-approval in hand. It will strengthen your offer in the case of a bidding war.
- Set up a real estate alert to be immediately notified about new listings within your budget.
- Find overlooked deals by signing up to an investor’s mailing list.
- Work with a real estate broker. Their experience and market knowledge will guide you through the negotiation process and increase your chances of finding a perfect opportunity.
This article, Montreal Condo Supply Hits 8 Year Low, appeared first on Shupilov News.