Montreal’s real estate cycle is currently coming into the expansion phase, where new construction begins to pick up due to a strong economy and low unemployment rates. During this stage, the market is on the upswing in terms of demand and consumer confidence. Demand outweighs supply, prices are high (and rising,) and competition may lead to bidding wars.
Is this a good time to purchase a condo in Montreal? With prices on the rise, should investors and first time buyers consider a condominium purchase in 2019?
Here are some points to consider if you’re thinking of buying a condo in Montreal in 2019:
What do average appreciation rates and prices look like?
Condos have grown in price across all boroughs on Montreal Island, according to the latest (Q3) Centris statistics.
The highest appreciation rates were recorded in Mont-Royal, where the average condo appreciated by 21% year over year in Town of Mont-Royal, and costs $420,000.
|Median Price||Appreciation (Quarterly)||Appreciation Rate (Annual)|
|Montreal Island (Average.)||$325,000||8%||6%|
|Villeray / Park Ex/ St Michel||$263,750||-5%||1%|
|CDN \ NDG||$366,000||11 %||0%|
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Investment strategies during the expansion phase:
During the expansion phase, investors and developers can comfortably acquire new rental investment properties without much risk, since tenant retention is high and rents are rising.
Most investors choose to acquire “Core-Plus” properties during this period – investments with less risk than value added properties, at a lower leverage range or 20% to 30%.
This is a good time to secure neglected properties in need of renovation, and bring these properties into full productivity before reselling them at the crest of the cycle.
For developers, the expansion period is the ideal time to develop new projects, as current demand for space is at a market high.
Where to find condominiums below market value:
To secure a good deal amidst growing real estate prices, investors can try the following strategies:
- Set up a property alert for repossessions in your preferred neighbourhood. Repossessed homes tend to be listed below market value since they are being sold by the bank, rather than the seller. Note: indicate that you are looking for repossessed properties in the “Additional Criteria” section.
- Request a list of top properties listed below municipal evaluation in Montreal.
- If you think a property might be listed below market value, request a free professional evaluation of the property’s current worth.
- Ask your broker to send you his or her own selection of BMV properties. Many brokers have access to pre-market BMV properties, which are likely to sell even before they are listed online.
- Subscribe to a Deal of the Week mailing list, which will send you the single best BMV property on the market every week by email.
Most affordable Montreal areas to find condominium deals in 2019:
*Central areas are highlighted.
Montreal Nord: $218,000
Villeray / Park Ex/ St Michel: $263,750
Other areas to watch (high appreciation rates):
- Median condo price: $240,950
- Sales: 6% increase
- Condo appreciation: 10%
- New starts include: Modern condos by DevMcGill, a high-rise by Rachel Julien
- Recommended area: Hochelaga, near Angus Shops
Cote Des Neiges
- Median condo price: $330,000
- Sales: 18% increase – #3 top performer in the Greater Montreal Area
- Condo appreciation: 9%
- New starts include: a LEED certified condo project by Knightsbridge, luxury condos by Devmont
- Recommended area: The Triangle
Pointe St Charles
- Median condo price: $344,000
- Sales: 10% increase (South West)
- Condo appreciation: 10%
- New starts include: industrial style lofts near Charlevoix metro, townhouses on de Sébastopol street
- Recommended area: Close to Wellington or Charlevoix streets
West Island South*
- Median condo price: $315,000
- Sales: -2% decrease
- Condo appreciation: 20%
- New starts include: Townhouses by Broccolini, affordable canal-side condos by Groupe Tyron
- Recommended area: Beaconsfield
This article, Montreal Real Estate Forecast: Should I Buy A Condo In 2019?, appeared first on Shupilov News.