Active listings showed a more subdued annual increase, industry association says
Buyers have returned with a vengeance to the Montreal market, encouraged by the region’s stabilization over the past few quarters, according to the Quebec Professional Association of Real Estate Brokers.
In its latest report, the QPAREB said that Montreal saw a total of 4,428 residential sales in May, representing a “noticeably more limited” drop than was seen in recent months. The 8% annual decline for the month of May was last seen in 2015.
At the same time, the region’s active listings had a more subdued annual increase (up by 46%) compared to recent months. Active listings totalled 16,089 units, with gains registered across all residential asset classes. Single-family homes (6,899 listings) posted the greatest year-over-year gains at 55%, followed by condominiums (6,735 listings, up by 43%) and plexes (2,407 listings, up by 30%).
“The month of May clearly marks a return of buyers to the market encouraged by the stabilization of interest rates and prices,” said Charles Brant, market analysis director at the QPAREB. “Moreover, homeowners are more inclined to list their property at prices more in line with recent sales of comparable properties, in a context of stabilization and even the recovery of prices.”
The region’s median prices remained relatively stable on an annual basis, possibly indicating that “prices are recovering in a market environment that remains tight, to the advantage of sellers,” the QPAREB said.
Median prices for single-family homes stood at $550,000 in May (down by 4% year over year). Small income properties saw a 3% drop during the same period (reaching $730,000), while condos were the most stable with just a 2% decrease (reaching $403,000).
“Only a slight pullback in prices from last year’s peak has been experienced,” Brant said. “This reflects renewed interest in the opportunities offered in this market. Thus, the market on the Island of Montreal is more balanced and its longer-term upside potential remains tangible with the resurgence of international and interprovincial migration. All this, despite financing costs that will be permanently less advantageous than in recent years.”
