Significant shifts in market activity were seen in the region’s peripheral markets, according to the QPAREB
Amid sustained pandemic pressures, sales activity in the Montreal housing market dipped to a four-year low in January, the latest data from the Quebec Professional Association of Real Estate Brokers shows.
A total of 2,836 residential transactions took place in the market last month, the QPAREB said. Similar levels were last seen in 2018, with the largest annual decreases registered in peripheral markets like Vaudreuil-Soulanges (down 40%), the North Shore (down 33%), and the South Shore (down 30%).
Properties valued at over $700,000 saw an 11% increase in sales, and represented 22% of Montreal housing market activity in January (up by 8% annually).
“This implies that first-time home buyers continue to be less active in the market, particularly in the periphery, which has also contributed to lower overall sales,” the QPAREB said.
“The combination of the return of tighter health restrictions due to the Omicron wave, the expected upward movement in interest rates which are already seen in five-year fixed mortgage rates, and the arrival of new opportunities at the start of the year has once again made the acquisition of a new property a priority for experienced buyers and investors,” said Charles Brant, director of market analysis at the QPAREB. “This renewed interest is particularly evident in the Island of Montreal’s peripheral areas.”
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Active listings in the Montreal region dropped by 15% annually, while single-family median prices grew by 25% during the same period to reach $541,000. Condominium values were up by 19% year over year to reach $381,000, and plexes saw a price increase of 9% to end up at $712,500.
“With rising sales in higher-price segments while down in others, we are noticing a further acceleration in prices, particularly on the North Shore, the South Shore, Vaudreuil-Soulanges and Saint-Jean-sur-Richelieu,” Brant said.
