A steadily depleting inventory is spurring even more bidding wars for the market’s highly desired properties
A combination of accelerated home price growth and a markedly heightened degree of competition has pushed Montreal towards being a seller’s market, according to professional services firm Shupilov Real Estate.
Dwindling inventory is also pushing average housing prices even higher.
“This is especially true in the single family home segment, where bidding wars are increasingly common and offers are more likely to be accepted above the original asking price,” Shupilov’s analysis stated.
Indeed, some of the highest sales-to-new-listings-ratios (SNLR) in the city can be found in communities with the most in-demand single-detached properties.
Centris data covering Q4 2018 showed that Montreal’s top sellers’ markets for the asset class are Pointe Claire (SNLR of 149%, median price of $454,000), Cote-des-Neiges-NDG (SNLR of 112%, median price of $750,000), Kirkland (SNLR 86%, median price $590,000), Ville Saint Laurent (SNLR 84%, median price $595,000), and Verdun / Île des Soeurs (SNLR 82%, median price $790,000).
Read more: Montreal sees 46th straight month of sales growth
Condos also had a strong showing, magnetizing outsized demand that is steadily eating up available supply. Leading sellers’ markets for this property type were Plateau (95%, $410,000), Dollard-des-Ormeaux (93%, $260,000), Verdun (86%, $368,500), Cote-St-Luc (78%, $355,000), and Rosemont (77%, $345,000)
The figures aligned with the observations made by the Quebec Federation of Real Estate Boards, which stated that overall 2018 sales volume reached a record-high 46,753 transactions.
“Generally speaking, 2018 ended with market conditions clearly in favour of sellers for single-family homes, condominiums, and plexes. The scarcity of supply of single-family homes as compared to the demand is undeniable on the Island of Montreal, where the number of months of inventory is slightly less than five,” the QFREB said earlier this month.
The 2018 performance represented 5% growth over 2017, along with being the 4th consecutive annual increase in sales. The QFREB assured that this has put Montreal in a very good spot, as the momentum is expected to last for much of this year.
