Conditions point to a downward trend, says association
The Montreal market has continued to show signs of slowing after home sales dropped in June, according to the Quebec Professional Association of Real Estate Brokers (QPAREB).
Home sales in Montreal totalled 4,078 last month, down 11% compared to the same time last year.
With this total falling short of 4,333, the monthly sales average since 2017, the market remains on a slowing trend, said QPAREB.
Sales for single-family homes and condominiums fell 9% and 10% year-over-year, while plex sales tumbled by 25%.
“Sales continue to slow down significantly in the Montreal area. In this context, new listings, which have been above the historical average since the month of May, are starting to have an impact on the inventory of properties for sale,” said Charles Brant, director of QPAREB’s market analysis department.
Active listings reached a total of 12,370 this month, up 15% from the same time last year. New listings, meanwhile, climbed 23% since June 2021, with a total of 6,573.
According to Brant, the increase in listings translated to a slight increase in time to clear inventory and allowed the market to ease slightly for the first time since 2015.
“While market conditions remain very tight in favour of sellers, the next few months will finally usher in a downward trend in overbidding and a winding down of the continuing rise in prices compared to 2021,” added Brant. “Overall, prices have been stabilizing since last May, indicating that the Montreal market has reached its peak, especially in a context where it is becoming increasingly difficult for households to qualify for a mortgage loan.”
June’s median price for single-family homes was at $570,000, which is a 12% increase from the same time last year, but $6,000 below what was reported last May.
Price growth for condominiums was at also at 12%, settling at a median of $410,000, while the median price for the plex market climbed by 9% to $770,000.
