Canadian real estate sales have experienced the slowest August since 2013, according to CREA’s latest monthly statistics.
41,151 unadjusted sales were recorded in August, which is 3.78% fewer than in August 2017.
Meanwhile, Montreal Toronto and Ottawa are seeing quickly growing sales and housing prices.
Montreal reported 3,224 sales in August, a 8.48% increase from last year.
Toronto and Ottawa saw (+6,839 )7.58%) and 1,619 (+4.05%) sales respectively.
Why is Montreal’s Real Estate Market Doing So Well?
Montreal’s real estate renaissance has been marked by quick sales, shrinking inventories, and healthy appreciation rates.
Reasons for heightened interest in homeownership include:
- Affordability relative to other metropolitan cities, which has attracted buyers and investors from more expensive Canadian provinces.
- An economic revival fuelled by the tech and AI industries.
- Montreal catching up to the Canadian housing boom, while Toronto and Vancouver cools in response to anti-speculation measures.
- The quality of Montreal’s universities, schools, and cultural life.
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Why are sales declining in other Canadian provinces?
British Columbia recorded the fastest shrinking sales numbers, the most notable being Fraser Valley where sales decreased a whopping 39.52 since last year.
Decreases can be in part attributed to capital controls from China, unaffordable prices in the detached home market, rising interest rates and new taxes placed on foreign ownership.
Prices and Appreciation: Montreal and Canada
Apartment units posted the largest year over year price gains in August (+9.5%), followed by townhouse/row units (+4.3%).
The single family home market showed very little change – one storey house prices rose by 0.4%, while two storey family home prices decreased by 0.4%.
Home prices increased 5.9% in Greater Montreal, led by a 6.3% increase in two-storey single family home prices.
The actual (not seasonally adjusted) national average price for homes sold in August 2018 was just over $475,500, a 1% increase from the same month last year. However, the average is heavily skewed by sales in GVA and GTA. Without those markets, the average home price would drop to $382,000.
In Montreal, the average home cost $345,600 in August 2018.
This article, CREA: Montreal’s Real Estate Market Is Booming While The Canadian Market Slows Down, appeared first on Shupilov Real Estate.