Sales cooldown was registered across all property categories
Residential sales in the Montreal metropolitan area reached 3,627 in June, representing a decline of 10% (418 transactions) on an annual basis, according to the Quebec Professional Association of Real Estate Brokers (QPAREB).
The most prominent declines were seen in Vaudreuil-Soulanges (down by 28% year over year with 146 sales) and Laval (down by 20% with 336 sales).
A sales slowdown was registered across all property categories, with the most significant decelerations seen in small-income properties (down by 16% annually with 338 sales) and condominiums (down by 11% with 1,389 sales). Single-family homes dropped by a more modest 8% to 1,899 transactions.
Active listings went up by 32% during the same time frame, reaching 15,806 units.
“While it is true that June usually experiences less sustained transactional activity, a further rise in interest rates and the decline in new listings are sending a negative signal to market participants who could consider postponing their purchase or sale project,” said Charles Brant, market analysis director at QPAREB. “This is particularly the case in the Montreal CMA where median prices are the highest in the province.”
QPAREB estimated that more than 50% of the market’s single-family listings command selling prices above $700,000.
“It is certain that at such prices, most of these single-family properties are essentially intended for experienced buyers who, at a minimum, are able to make a large down payment,” Brant warned. “However, this pool of affluent buyers is all the more reduced as foreign buyers have been squeezed out of the market.”
This is despite median prices declining over the past year. Plexes stood at $726,500 (down by 6%), while single-family homes fetched an average of $550,000 (down by 4%) and condos settled at an average of $390,000 (down by 5%).
