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Montreal Surpasses Toronto and Vancouver For Real Estate Price Growth

The Royal Lepage House Price Survey recorded a record-breaking start to 2019.

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The Royal LePage House Price Survey released today showed that Montreal’s housing market is still on an upwards trajectory, now surpassing both Vancouver and Toronto in real estate price growth. The aggregate price in the Greater Montreal Area is now $406,332..


TL;DR: Home prices in the GMA increased by 4% year over year for the 11th consecutive quarter. Montreal Centre recorded the highest appreciation rate of 8.1%. The federal government is now launching new initiatives to promote affordability.


Appreciation rates per property type

Montreal Centre registered the highest price growth at 8.1% year-over-year

Still, the Greater Montreal Area offers a much lower aggregate price than the other metropolitan regions at $406,332 compared to $836,425 in the Greater Toronto Area and $1,239,306 in Greater Vancouver.

Two storey homes were most popular in the Greater Montreal Area. Prices increased by 6.4% to reach a median of $514,412.

Condominium prices increased by 5.2% to a median of $328,488. In Montreal Centre, the price of condominiums is just below the $400K mark, at $396,942.

Bungalow prices in the Greater Montreal Area increased modestly by 3.7% to reach and average of $316,159.

Appreciation rates per neighborhood

The most desirable neighbourhoods according to price growth are: Montreal East, and the North and South Shores.

Montreal Centre and the South Shore recorded the strongest price growth for two-storey homes, where the average home rose by 11.8% (reaching $739,032) and 7.2% (reaching $462,497) respectively.

Bungalows are most popular in Montreal East, where median prices rose 7.9% to $372,500. Certain parts of Montreal East are expanding rapidly and attracting more buyers, such as Rosemont and Hochelaga-Maisonneuve.

Condominiums saw notable price growth in Montreal East (8.3%), the North Shore (6.9%), and the South Shore (6.4%). Condo prices were highest in Montreal Centre, where the average condo appreciated by 4.7%. Montreal West was the only area to show a year-over-year price decline (-2.8 per cent) across all property types surveyed this quarter.

Which factors are influencing price growth?

The city is reaping the benefits of a strong economic performance, with residual unemployment rates at 5.3% province-wide and 7.3% in Montreal. In fact, Montreal was crowned the “leading Canadian city for economic growth” by the Conference Board in late 2018.

The city’s affordability has also driven increased demand among young buyers competing in the condominium market.

The city’s core has also attracted more foreign buyers in recent years, although these remain a small proportion of the overall transactions.

Forecast for Q2

Royal LePage expects the median price of homes in Montreal to increase by 1.6% in the second quarter of 2019. Strong demand combined with a diminished inventory is likely to keep prices high through to the end of the year.

In order to maintain affordability, the City of Montreal may soon be requiring that each building reserve 20% of their inventory for social and family housing.

Homeownership incentives

Certain other factors may contribute positively to sales. Bank of Canada’s key rate will remain stable at 1.75% for the foreseeable future. Meanwhile, Federal budget’s home buying incentives could help boost first-time homeownership by providing interest free loans on certain types of housing.

Royal LePage House Price Survey Data

Two-Storey Homes

Q1 2019 Median 
Price

Q4 2018 – Q1 2019 Average (%)

Q1 2018 – Q1 2019 Average (%)

Laval

$444,747

0.7%

4.6%

Montreal Centre

$739,032

4.9%

11.8%

Montreal East

$514,173

-0.2%

4.2%

Montreal West

$566,810

0.6%

3.5%

Montreal (North 
Shore)

$387,328

-0.2%

1.6%

Montreal (South 
Shore)

$462,497

0.1%

7.2%

Greater Montreal

$514,412

1.4%

6.4%

Bungalows

Q1 2019 Median 
Price

Q4 2018 – Q1 2019 Average (%)

Q1 2018 – Q1 2019 Average (%)

Laval

$324,603

0.5%

3.8%

Montreal Centre

$473,746

-0.4%

4.0%

Montreal East

$372,500

1.9%

7.9%

Montreal West

$387,684

-1.2%

1.2%

Montreal (North 
Shore)

$276,291

1.1%

3.0%

Montreal (South 
Shore)

$311,617

0.8%

4.0%

Greater Montreal

$316,159

0.7%

3.7%

Condominiums/Apartments

Q1 2019 Median 
Price

Q4 2018 – Q1 2019 Average (%)

Q1 2018 – Q1 2019 Average (%)

Laval

$254,131

0.8%

4.2%

Montreal Centre

$396,942

0.9%

4.7%

Montreal East

$307,770

0.7%

8.3%

Montreal West

$266,748

-1.2%

-2.8%

North Shore
Montreal

$238,793

4.5%

6.9%

South Shore 
Montreal

$248,220

2.3%

6.4%

Greater Montreal

$328,488

1.2%

5.2%

Aggregate

Q1 2019 Median 
Price

Q4 2018 – Q1 2019 Average (%)

Q1 2018 – Q1 2019 Average (%)

Laval

$367,990

0.7%

4.3%

Montreal Centre

$522,105

2.8%

8.1%

Montreal East

$409,633

0.3%

5.9%

Montreal West

$478,962

0.1%

2.5%

Montreal (North 
Shore)

$315,896

0.8%

2.7%

Montreal (South 
Shore)

$370,892

0.6%

6.1%

Greater Montreal

$406,332

1.2%

5.5%

*The data in the above table may not correspond to those previously reported for the same period due to later updates in the market.

 

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This article, Montreal Surpasses Toronto and Vancouver For Real Estate Price Growth, appeared first on Shupilov News.

 

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