Rising prices and limited inventory set Montreal homebuyers up for a competitive spring home-buying season this year.
According to the latest GMREB housing statistics, home sales on Montreal Island have increased by 5% compared to February 2017, while active listings have dropped by 17%.
If you’ll be on the market to buy or sell a property this spring, here are a few things you can expect:
A hot market favouring sellers
Along with a sharp decrease in active listings, Montreal’s market has seen a drop in its “average selling time” across the board. A low “selling time,” or “days on market,” is a good indication of heated conditions, which could stem from high demand, low inventory, high consumer confidence, or a combination of all three.
When shopping in a seller’s market, it is advised to:
- Prepare all your documents including your pre-approval beforehand, to avoid unnecessary delays down the line.
- Work with an experienced broker who can quickly and effectively advise you during the negotiation process, while steering you away from risky investments.
- Set up a property alert (your broker of choice will help you complete the process online) to be immediately advised of new listings. Acting fast is a priority in a seller’s market, so you will want to be one of the first to visit the property as soon as it hits the market.
Condominiums will dominate the market
For the past two years, the condominium market has registered the largest increase in sales. In 2018 condo sakes saw a 14% increase year over year, compared to a 1% and 3% increase for single family homes and ‘plexes respectively.
The median price of a condo in the CMA rose by 5% to $250,000.
Meanwhile, Mount Royal, Lachine, Rosemont and Villeray saw the highest appreciation in their condo market last year, with price growth ranging to 6$ (Villeray) to 22% (Mount Royal). The most affordable borough to purchase a condo in the urban core of Montreal over the past year was Montreal North – where the average condo costs $216,279, closely followed by HOMA at $230,000.
Healthy performance in the detached home and ‘plex sectors
On average, home prices in Montreal grew by 8% in 2017, to a median of $448,000. Verdun, Dorval, Rosemont, Beaconfield and Kirkland performed particularly well, with appreciation rates ranging between 16% (Kirkland) and 20% (Verdun).
Meanwhile Plateau and Lachine hold the top spots for performance in the ‘plex market. The average Plateau revenue property appreciated by 16% in 2017, while in Lachine prices grew by 12%.
Rental units bolstered by a strong labor market and immigration.
Current market conditions indicate that 2018 would be a good year to purchase a rental property. Average rental rates have increased (on par with average yearly inflation) for all property types with the exception of bachelor (studios or lofts without a closed bedroom) condominiums. As it stands, the best investment would be into a 2 bedroom condo, which holds the lowest vacancy rate at 2.5%.
READ MORE: Montreal Rental Market Recap – 2017
This article, What To Expect From The Spring Real Estate Market In Montreal, appeared first on Shupilov News.