Prices continue to spike amid red-hot market and depleted inventories
Continued market tightness favouring sellers, coupled with the increasing influence of bidding wars, remain the major factors behind the sustained pressure on Montreal’s housing sector, according to new data from the Quebec Professional Association of Real Estate Brokers.
On an annual basis, the median price of single-family homes spiked by 18% to reach $565,550 in March. Condominiums and small income properties both had price increases of 16%, ending up at $402,600 and $773,500, respectively.
“The month of March has been characterized by a renewed increase in prices, around 17%, for all categories combined, when compared to the same period last year,” said Charles Brant, director of market analysis at the QPAREB.
However, while overbidding continues to define market dynamics, the surge “may be one of the very last ones,” Brant said. “Indeed, the number of active listings tends to stabilize, or even increase in certain sectors and categories, after the steady decline recorded since the beginning of the pandemic.”
Inventory in the region appears to have reached a low point, the QPAREB said. Active listings fell by 10% annually in March, following several major declines of 11% in February and 20% in January.
Read more: Quebec home-buying intent returns to pre-pandemic levels
Housing sales activity fell by 13% year over year, largely impelled by a 37% drop in the Saint-Jean-sur-Richelieu area.
“It should be noted that, at the same time, sales are decreasing at a noticeably lower level than what was seen during the same period of the year, pre-pandemic,” Brant said. “The new increase in key interest rates anticipated for April 13 should help calm things down as more selling homeowners may put their property on the market to take advantage of a still very favourable market climate.
“However, in this context of rising rates, the pool of potential buyers is shrinking, while prices are reaching new highs.”
