Latest sales figures revealed
Montreal's real estate market saw a double-digit increase in home sales in March, according to the Quebec Professional Association of Real Estate Brokers (QPAREB).
A total of 4,488 homes were sold in the region, up 14.2% from the March 2023 figure of 3,930, though remaining below the historical average for this time of year.
The median price across all housing types also rose year-over-year, with single-family homes seeing a 5.6% increase to $565,000. Multiplexes and condominiums saw median price increases of 5.5% ($750,000) and 4.9% ($400,000), respectively.
The number of active listings in March jumped 17.1% compared to the previous year, totalling 18,707, while new listings increased by 10.4%.
National outlook
Canada Mortgage and Housing Corp. (CMHC) painted a less optimistic picture for the broader Canadian housing market. Its latest outlook warned of rising rents, lower vacancy rates, and continued affordability issues for homebuyers.
"Unfavourable financing conditions are expected to make it more difficult for home builders to start new rental projects in 2024," said CMHC chief economist Bob Dugan. He anticipates improved conditions by 2025-2026, supported by lower interest rates, government policies, and increased urban density.
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Affordability will remain a major concern for homebuyers in the next three years, CMHC said. While sales and prices declined from their peak in 2021, a combination of pent-up demand (fuelled by population growth, savings, and higher incomes) and easing mortgage rates could drive a market resurgence by late 2024.
“During this time, the pool of potential homebuyers grew through robust population growth, increased savings and higher incomes,” CMHC said in the report. “As mortgage rates and economic uncertainty decrease in the second half of 2024, we expect buyers to start returning to the market.”
CMHC predicted a shift in demand towards lower-priced homes and markets. Sales activity from 2025 to 2026 is expected to slightly exceed the past 10-year average but remain below 2020-2021 levels due to persisting affordability issues.
The agency also forecasted a decline in housing starts this year, followed by a recovery in 2025 and 2026, reflecting the lagged effect of higher interest rates.
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