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Montreal Real Estate 2017: A Year in Review

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With new mortgage regulations, interest rate hikes, and taxed imposed on foreign investors, 2017 has been a year of changes. Nevertheless, the local real estate market has remained healthy and stable, showing appreciation rates on par with expected growth.


January:

Teranet and the National Bank of Canada have collaborated to pull together house price data in Canada’s 6 metropolitan cities (Montreal, Vancouver, Toronto, Edmonton, Ottawa and Calgary). In Montreal, a sharp increase in luxury homes (over $500,000) was recorded, as well as a slight decrease in home sales in the $200,000-$300,000 price range due to tightened mortgage regulations in 2016.

February:

Bank of Canada holds its key interest rate at 0.50%. Analysts predict that it’s likely to remain at that rate until 2018. The bank’s next interest rate announcement is scheduled for March 1. Meanwhile, Trump’s US election at the end of January inspires a slew of questions regarding the trickle down effects on Canadian real estate.

March:

According the the statistics recorded in the first quarter of 2017, Montreal’s real estate market may shift in favour of sellers with the following trends:
  • An increasing number of total sales
  • A decreasing number of active listings
  • A decreasing Time-to-Sell
  • A decreasing monthly supply of properties
  • A decreasing number of expired listings
  • A decreasing number of new listings

April:

Ontario implements a 15% foreign investor tax, among other measures. Six significant changes were recently implemented in Ontario in an attempt to cool Toronto’s overheated real estate market.

May:

Having moved into the second quarter of 2017, there’s much speculation about where the real estate market is headed. The key changes in the past 3 months have been that 2017 Federal Budget favours the housing market, Desjardins’ recent resale housing market forecast, published on March 23, forecasts a 2.3% growth rate for existing home sales in 2017, and the Canadian Real Estate Association’s (CREA) housing market statistics indicate that 37,379 residential properties were sold in Canada in February 2017.

June:

The qualifying rate is predicted to increase in 2018 by the Bank of Canada, from 4.46%.

July:

According to a poll conducted by CIBC, most Canadian parents (two-thirds, to be precise) would be happy to gift their grown children cash, if it meant they would move out and get started on their independent lives. When asked to quantify the amount, the average among the surveyed cohort amounted to $24,000.

August:

Airbnb becomes fully legal under Quebec legislation.Airbnb and Quebec’s government have struck a deal in which Airbnb will be allowed to operate legally while remitting a “tourist tax” on short term rentals, on behalf of its hosts.

Montreal’s real estate market is showing signs of moving towards a seller’s market, with a diminishing supply and a strong demand for new and active listings.

September:

Montreal emerges as a luxury real estate hotspot in Canada, and financial analysits believe that the Bank of Canada is likely to hike its influential rate again this fall, after already having increased the overnight rate twice since the beginning of 2017.

October:

Two reports released today indicate that house prices in Montreal have reached a new high. The aggregate price of condos and homes are now $384,055, a 6.6% increase from July 1 until September 30.

This Tuesday, Canada’s federal banking regulator introduced new regulations which extend stress tests to all homebuyers, including those contributing more than 20% towards their downpayment.

November:

Centris stats reveal best neighbourhoods to invest into, in 2018. Those include Lachine, Ville Mont Royal, the South West, NDG…

December:

Montreal shows highest price increase across Canada. This is the third consecutive month that prices have risen in Montreal.

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