September sales were comparable to a "very quiet" August, industry group says
Montreal residential sales posted considerable growth on an annual basis in September, but activity remained lower than the historic average for this time of year, according to the Quebec Professional Association of Real Estate Brokers.
The market saw a total of 2,738 residential sales in September, up by 9% annually. This level of activity was “comparable to that of a very quiet month of August,” the QPAREB said.
“If sales are up compared to the same period last year, it is because 12 months ago activity had started to drop towards an all-time low. The same phenomenon is observed in the mainly positive variation in prices,” said Charles Brant, market analysis director at QPAREB.
The QPAREB attributed the slowdown to the ongoing effects of elevated inflation and multi-decade-high interest rates, which “translated into a more cautious approach by buyers in September.”
Lauren Haw of Zoocasa, anticipates that the real estate market will experience increased activity once fall begins, despite a slight cooling in national sales in July. https://t.co/zrbZWrehUg#mortgageindustry #housingmarket #houseprices
— Canadian Mortgage Professional Magazine (@CMPmagazine) August 30, 2023
“Household purchasing power remains eroded by inflation and the savings cushion accumulated during the pandemic is rapidly depleting,” Brant said. “For their part, sellers are trying to cash in their added value while market conditions, supported by a solid migratory flow, are still favourable to them.”
“Good marketing at the right price will be more and more critical in attracting a motivated buyer pool which, however, will most likely be smaller and more selective,” the QPAREB said. “This is particularly the case for single-family homes, as prices have almost reached the last peak of 2022.”
