Sales activity surges as market conditions improve
The Montreal real estate market continues to show signs of recovery as sales activity picks up and prices stabilize.
Residential sales in the Montreal area rose 12% year over year to 3,439 transactions in July 2024, according to the Quebec Professional Association of Real Estate Brokers (QPAREB).
This level of activity is slightly higher than the historical average for this time of year since data collection began in 2000, making it the fourth-best July in 25 years.
QPAREB’s report partly attributed this growth to recent interest rate cuts by the Bank of Canada, which have lowered borrowing costs for homebuyers.
“It is certain that here, more than elsewhere in Quebec, the second successive drop in the key rate by the Bank of Canada has contributed to an upsurge in activity in the metropolis, particularly in the more sensitive markets, that is to say, the least affordable homes,” said Charles Brant, QPAREB market analysis director.
While sales are increasing, the market is still characterized by a relatively balanced supply of homes for sale. The number of active listings rose by 22% in July compared to the previous year, offering buyers more choice.
However, the availability of affordable housing continued to be a concern, and rising construction costs are impacting the development of new homes.
Home prices continue to climb, though at a slower pace than in previous months. The median price of a single-family home rose by 6% year-over-year to $585,000, while condominiums saw a 4% increase to $411,000.
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Despite the high prices, Brent said this is a clear sign that “the massive exodus towards other regions of Quebec is well and truly over, and that more and more newcomers are settling there.”
The Island of Montreal saw a historic population increase of 90,000 between 2022 and 2023, according to the Institut de la statistique du Québec.
“In the case of the Island of Montreal, it is particularly interesting to note that price growth has tended to stabilize, thanks to virtually balanced market conditions,” he added. “This has allowed buyers to benefit more fully from the impact of lower mortgage interest rates.”
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