According to the GMREB data released on Friday, residential real estate sales in Montreal have risen in the month of July across all property types, for the third consecutive month.
Home sales in the larger Montreal area increased by 16% last month, compared to July 2016. The largest increase was seen on the Island of Montreal, where home prices rose by 21% compared to the same time last year. Condo sales increased by 24%, single family home sales by 13%, and plex sales by 2%. If prices continues to trend upwards, Montreal could see its busiest year since 2007.
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. Characteristic of this type of market, sellers are seeing bidding wars on their homes, faster sales, and rising prices across the board. The increase in demand is coupled by a decrease in supply, as properties spend fewer days on the market before being purchased. In fact, the number of active listings on Centris dropped by 15% compared to July of last year. The number of new listings also fell by 8% between June 2016 and June 2017.
The shift from a buyer’s market to a seller’s market is credited to a robust economy fueled by a strong local purchasing power.