Earlier this month, the Canadian Real Estate Association released its 2018 predictions for upcoming market trends. Montreal is expected to gain momentum while Vancouver and Toronto cool down. If current trends continue, real estate will provide the economic boost that the provincial economy needs.
GMREB recorded record sales in May this year, a 15% increase relative to May 2016.Montreal has now experiences 30 consecutive months of sales gains in real estate. Condos contributed greatly to the increase (19% of all transactions), with an 8% increase in residential sales across the GMA. Singe family home sales rose by 4%. Sales are expected to continue increasing in 2018, while they wane in other Canadian metropolises.
According to Centris stats, here are the results for the third quarter of 2017, which provide insight into expected trends in 2018.
- Single Family Homes– 1,244 units sold, +5%
- Condominiums– 1,964 units sold, +19%
- Plexes – 664 units sold, +8%
- All Residential Units– 3,872 units sold, +12%
If these numbers are any indications, Montreal’s condominium market is one to look out for in 2018.
Prices of detached homes increased by 6% in 2017. This represents a healthy upswing for the local market.
The average cost of a detached home rose to $323k (+8% over 12 months). The median condo price rose to $256,000 (+2.2%). Plexes saw a +4% increase year over year.
There has been much talk over the past year about increased overseas buyers, motivated to invest in Montreal in response to Ontario and BC’s overheated prices and Home-Buyer taxes. While Montreal has seen more foreign investment (mainly from French buyers) in the past few years, it has not lead to a huge impact on prices or demand. The complete effect of Ontario’s taxes will only be seen in the long term. Meanwhile, Montreal remains significantly more affordable than Toronto or Vancouver, the median selling price coming in at $319,000 compared to $1.56 million in Vancouver and $1.1 million in Toronto.