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GMREB April 2018: Montreal Is Canada’s Next Hot Housing Market

Montreal real estate transactions increased by 10% while sales activity dropped in Toronto and Vancouver.

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The Greater Montreal Real Estate Board (GMREB) released its April residential real estate report today, based on statistics from the Centris provincial database.

The most recent statistics record 5,432 residential sales in April 2018, which is 10% higher than April of last year. This is the best April since 2010, and Montreal’s 38th consecutive monthly increase in sales.

Which area is seeing the highest sales increase?

  • Suburban areas in the GMA saw the highest increase in sales. The South Shore led the way at 15%, followed by 13% in Saint-Jean-sur-Richelieu and 12% in Laval.
  • Sales on the Island of Montreal increased by 6% in April.
  • In Vaudreuil-Soulanges, sales remained unchanged.
  • All other areas in Montreal’s GMA registered significant increases in sales activity.

Which property type is performing best?

  • Condominium sales performed the best in April, with an 18% increase in transactions year over year.
  • Single family homes registered a 6% increase in sales activity.
  • ‘Plexes also registered a 6% increase across the GMA.
  • When it comes to price appreciation, single family homes are performing best,  at 6% appreciation since April 2017.
  • Condominiums appreciated at the slowest rate between April 2017 and April 2018, at 2%.

Does the market favour buyers or sellers? 

  • In April of 2018 there were 24,466 active listings registered on Centris, which is a 17% drop compared to April last year.
  • Decreasing supply and increased demand is indicative of a seller’s market, marked by increased competition, rising prices, bidding wars, and a drop in selling time.
  • Sellers can find average selling times in their area and for their specific property type with our Selling Time Calculator.

How does Montreal’s performance compare to the rest of Canada?

In contrast to Montreal’s rising sales activity, Toronto posted its weakest sales for the month in 15 years, while activity in Vancouver fell 27 percent. Prices in both markets were stable despite fewer transactions.

Source: Bloomberg, CREA, TREB, REBGV, GMREB

 

Montreal’s healthy performance could be attributed to a recent growth in its economy – according to Think Tank Institut du Quebec, Amazon and IBM’s move to Montreal contributed to more jobs being created this year than in the previous 8 years. The city is also gaining prominence as an AI hub, hosting artificial intelligence labs by Thales SA and Facebook.

That being said, analysts do not see signs of overheating. Although sales activity is rising, price growth is still very much on par with yearly averages.

At $317,000, the median detached house price in Montreal’s GMA falls far below the median prices in Toronto ($870,000) and Vancouver ($1.4 Million).

Still, “Demand is strong and the number of properties for resale is down, so market conditions are getting tighter,” CMHC analyst Francis Cortellino said in a phone interview with Bloomberg. “The Montreal market is very dynamic at the moment.”

About the Greater Montréal Real Estate Board 

The Greater Montréal Real Estate Board is a non-profit organization with more than 9,000 members: real estate brokers. Its mission is to actively promote and protect its members’ professional interests in order for them to successfully meet their business objectives.

About Centris® 

Centris.ca is Québec’s real estate industry website for consumers, grouping all properties for sale by a real estate broker under the same address. Société Centris® provides real estate industry stakeholders with access to real estate data and a wide range of technology tools. Centris® also manages the collaboration system used by more than 13,000 real estate brokers in Québec.


This article, GMREB April 2018: Montreal Is Canada’s Next Hot Housing Market, appeared first on Shupilov News.

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