How did Montreal’s housing market fare in July?

Montreal posted a substantial decrease in housing activity last month, a trend that the Quebec Professional Association of Real Estate Brokers said began in May and has now placed the market at its pre-pandemic level for the summer period.

The market had 3,799 home sales in July, falling by 29% year over year “and solidified the downtrend in sales that began in early spring,” The QPAREB said. Still, this was the city’s second best July since 2000, it said.

“You may remember that in July of last year, we saw spectacular sales levels that went beyond the simple postponement of transactions that could not be concluded in the spring,” said Charles Brant, director of the QPAREB’s market analysis department. “While this slowdown is partly due to a drop in active listings of single-family homes to historically low levels, it can also be explained by the shrinking pool of buyers who can afford a property at current market prices.”

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QPAREB said that all residential asset classes registered lower sales when compared to July 2020. Activity in the single-family home segment declined by 37%, while condo sales dropped by 22% and plexes inched down by 4%.

“The increase in the supply of plexes on the market (+27%) contrasted with the drop in active listings for single-family homes (-37%) and condominiums (-15%),” the QPAREB said.

As for median prices, single-family homes were at $500,500 in July (up by 18% annually), while condos stood at $360,000 (up by 16%). Plexes reached $670,000 (up by 7%).

“The market is still in a situation of overheating, as almost half of all transactions in July were concluded at a price that was above the asking price,” the QPAREB said. “However, this situation has been easing for three months now.”