Montreal Compared To Toronto & Vancouver Markets

Montreal Compared To Toronto & Vancouver Markets

Montreal compared to Toronto & Vancouver markets, is a quick snapshot of the the three cities in terms of their overall real estate performance. All three cities, Montreal, Toronto and Vancouver are strikingly different. Montréal is very European in feeling, with old architecture and rich history. The province’s predominant language is French with a small Anglo minority.  Montreal is world renown for it’s awesome food culture! Montréal’s real estate market, due to political instability, endured periods of stagnation, keeping price points much lower than the Toronto & Vancouver markets. Over the past few years, Montréal has been steadily enjoying a golden renaissance in it’s recognition as a world class city!  Enjoy these few articles that make an interesting read;

A Luxury Building Boom Hits Montreal

Square Feet Along the main shopping street in the area of downtown Montreal known as the Golden Square Mile, Sonya Szczygiel and her husband, John Guinto, have sold beaded bracelets made of semiprecious stones for the last five years.

Why Judd Apatow Loves Montreal (You’ll Laugh)

Q. and A. Montreal, which is celebrating its 375th birthday this year, is known for history, food, architecture and the hometown performance group Cirque du Soleil. But for the filmmaker Judd Apatow, whose credits include “The 40-Year-Old Virgin” and “Bridesmaids,” the Canadian city is synonymous with comedy.

Toronto is a fun and urban city, predominantly English speaking. Over time, it became the business hub of Canada. Toronto feels like a big American city and is somewhat like the New York of Canada. It’s taken a while, but the food scene in Toronto has been steadily improving, but it doesn’t quite yet compare to Montreal’s. …Toronto has also experienced exponential growth in it’s real estate market with home price values steadily increasing over many years. The market in fact got so overheated, the provincial government decided to follow Vancouver’s lead and implement a 15% surtax for foreign buyers.

Vancouver, is already differentiated from the other two provinces by being situated on the west coast. It is a gorgeous, coastal seaport city with mountainous views, water and milder winters than Montreal and Toronto. “Vancouver is the third-largest metropolitan area in Canada. with the highest population density in Canada. It also happens to be one of the most ethnically and linguistically diverse cities in Canada. Vancouver’s real estate market was overheating with staggering price growth and a favorite of foreign buyer speculation. The government’s intervention, attempting to cool the hot market led to this Canadian city beccoming the first to implement the foreign buyers tax. The tax imposes an additional property transfer tax of 15% on all residential property purchased by foreign buyers. The new budget of 2018 is expanding the tax.

Cost of Living:

 

Cost of living in Montreal (Canada) is 21% cheaper than in Vancouver (Canada)
https://www.expatistan.com/cost-of-living/comparison/vancouver/montreal
Cost of living in Toronto, (Canada) is 25% more expensive than Montreal
https://www.expatistan.com/cost-of-living/comparison/montreal/toronto

 

Here is a side-by-side review of some of Canada’s largest cities.

City Toronto Montreal Vancouver Calgary Edmonton Ottawa Winnipeg Halifax
Population
(metropolitan)
6.0 million 4.0 million 2.4 million 1.4 million 1.3 million 1.3 million 0.8 million 0.4 million
Born Overseas 49% 21% 38% 22% 19% 18% 17% 7%
Visible Minorities 43% 16% 37% 19% 23% 14% 13% 7%
Average House Price
Mid 2016
$710 K $349 K $1008 K $469 K $370 K $374 K $279 K $293 K
Median Employment Income of Families (2014) $77,400 $70,200 $82,100 $110,100 $99,000 $94,000 $73,800 $64,800¹
Median Income
Per Family Household (2014)
$90,800 $82,600 $93,300 $121,200 $105,400 $112,100 $87,300 $76,200¹
Unemployment Rate
Mid 2016
7.2% 6.8% 5.3% 9.5% 8.3% 6.9% 7.4% 9.2%
Violent Crime Rate per 100,000 people (2015) 735 889 1,043 779 1,174 616 1,127 1,095
Crime Severity Index
(2015) *
45.7 59.1 96.2 78.3 101.6 46.5 87.2 62.8

Economic families, two persons or more
* Takes into account the seriousness of crimes reported to the police.
¹ Nova Scotia data used

Chart Source Via Livingin-Canada.com

The rental picture across the three cities of Montreal, Toronto & Vancouver

Feb 2018 Rental Rates Via Padmapper

Top 5 Most Expensive Markets

1. Toronto, ON held onto its position as the most expensive city in the nation with one bedroom rent continuing to grow last month, up 2% to $2,060. Two bedrooms saw a similar trend, climbing 1.2% to $2,550.

2. Vancouver, BC saw one bedroom rent fall below the $2,000 threshold again, decreasing 0.5% to $1,990. Two bedrooms stayed flat at $3,200.

3. Burnaby, BC remained third with one bedroom prices increasing 0.7% to $1,440, while two bedrooms saw a 0.9% dip to $2,130. Though fairly flat on a month to month basis, both bedroom types have rents up over 15% since this time last year.

4. Montreal, QC held onto its ranking as fourth. One bedroom rent grew 3.1% to $1,350, while two bedrooms jumped 5.1% to $1,660. One bedroom rent in this city is up over 13% since this time last year.

5. Barrie, ON rounded off the top five list with one bedroom rent increasing 0.8% to $1,270, while two bedrooms dropped 3.1% to $1,560.

Chart and information source via Padmapper

Montreal has three main popular rental categories, students, who want to be close to their universities. Working young professionals who ike to be close to work and transportation, and families looking for great neighborhoods with good walkability, schools, transport and housing features.

 

Rents in Toronto have now climbed above those of Vancouver, the long-running (and now former) champion of pricey apartments in Canada. A one-bedroom apartment in Toronto now rents out for an average of $2,020, a 15.4-per-cent jump in the space of a year.
Vancouver has been experiencing a real housing crisis, the sky high prices have left most Canadians unable to afford to rent or purchase in their own city. In fact the lack of affordable housing has been a major problem across these three cities….British Columbia in particular is working to address this issue with it’s government’s commitment to create solutions.

Best Places to Live in Quebec, Ontario and British Columbia

Information Source Via Moneysense

Every year Moneysense reviews the best places to live and 2017 was no exception. Have a look at the extensive research Moneysense compiled providing detailed information on the distinct communities and/or neighborhoods across the provinces.

 

Moneysense’s  profile of the best places to live in Quebec:
http://www.moneysense.ca/canadas-best-places-to-live-create-your-own-ranking/#region-qc
Moneysense’s  profile of the best places to live in Ontario:
http://www.moneysense.ca/canadas-best-places-to-live-create-your-own-ranking/#region-on
Moneysense’s  profile of the best places to live in Vancouver:
http://www.moneysense.ca/canadas-best-places-to-live-create-your-own-ranking/#region-bt

The Lastest Real Estate Sales Stats In January 2018 For Montreal, Toronto & Vancouver

 

Information source via Crea  (The Canadian Real Estate Association)
MLS® Home Price Index Benchmark Price
Composite HPI January 2018 Percentage Change vs.
1 month ago 3 months ago 6 months ago 12 months ago 3 years ago 5 years ago
Aggregate $602,100 0.30 0.17 -0.73 7.66 34.70 48.77
Lower Mainland $961,200 0.93 2.07 4.55 18.38 67.10 79.60
Greater Vancouver $1,056,500 0.58 1.36 3.64 16.64 63.05 77.96
Fraser Valley $778,100 1.59 3.56 6.55 22.43 78.11 84.12
Vancouver Island $450,000 1.19 2.56 4.50 19.63 49.26 54.16
Victoria $633,400 1.21 2.10 1.90 14.33 47.39 50.68
Calgary $426,500 -0.20 -1.51 -2.53 -0.46 -6.30 10.78
Regina $279,400 -1.26 -3.32 -5.41 -4.85 -2.19 -9.22
Saskatoon $293,300 -0.59 -2.20 -3.37 -4.10 -7.08 -3.37
Guelph $412,200 -0.75 1.33 -1.84 10.89 35.81 49.92
Oakville-Milton $695,700 1.80 -1.09 -1.51 -1.21 38.25 59.01
Greater Toronto $743,200 -0.04 -0.61 -3.85 5.16 41.99 63.11
Ottawa $370,100 0.18 0.24 1.73 7.17 12.36 13.21
Greater Montreal $330,500 -0.12 0.35 1.30 5.17 10.61 13.25
Greater Moncton $176,700 0.40 0.81 0.87 7.52 15.01 15.81

Via Crea

Housing Affordability In Canada Is Actually Improving

Housing Affordability In Canada Is Actually Improving

Housing affordability in Canada is actually improving. for the first time in three years.  For the first time since 2015 “the National Bank of Canada’s home affordability measure fell 0.2 points in the fourth quarter of 2017, meaning that an average mortgage on a representative home was slightly cheaper than it was a quarter earlier.”

This was due to two main factors, lower home prices and slower sales in Toronto over the last six months and a booming job market.

How much of your income you need to spend to afford an average mortgage

No Description

Rising housing prices have also led to rising interest rates with mortgage rates havem risen about 0.58 percentage points since the middle of 2017.

Vancouver is another story altogether. The real estate market having somewhat recovered somewhat from the 2016 foreign buyers tax implementation, has the new provincial budget tabled this week aims to fix this by increasing the foreign buyers’ tax to 20 per cent from 15 per cent, and creating a speculators’ tax on properties owned by people who don’t live in British Columbia, assessed at two per cent of the home’s value.

All I know is that people shopping in our Montreal market can’t complain in terms of price and product when they compare things to Toronto or Vancouver, check out this fixer upper in Toronto for 750,000$

 

 

 

 

 

Montreal Real Estate Conference By CREC

Montreal Real Estate Conference By CREC

Montreal real estate conference by CREC (Concordia’s Real Estate Club) was held today at John Molson School of Business. Today’s Montreal real estate conference was the 3rd year and I was happy I was able to attend. How great to see all these young business students dressed in suits and eager to learn about the vast world of real estate.

The conference did not disappoint.  Although the workshops had an overall informal vibe, they were very informative. The conference was well organized and had lots to offer with it’s diverse topics. Whether your interest was in commercial and industrial development, luxury real estate, or the world of appraisal and finance, there was something to learn.

For myself, the big take away was the message most speakers had about the importance of passion, loving what it is that you do, perseverance, the desire to excel, and the commitment to keep your nose to the grindstone.

The three sessions I attended today were “The Art of Advisory” featuring James Gang and George Semine, “Multi-Res: Rags to Riches” featuring Brad Cutsey, president of Interrent Reit. And lastly, “Young Guns in Real Estate” with Ian Quint and Jeffrey Soliman.

See todays full schedule here

Listen to an excerp from todays workshop  “The Art of Advisory” featuring James Gang and George Semine

 

Chinese Buyers In The Canadian Market

Chinese Buyers In The Canadian Market

Chinese buyers in the Canadian market features the recent report “China to Canada: International Home Buyer Insights”, jointly created by Sotheby’s International Realty Canada and Juwei.com, China’s premiere international property portal.

The report uncovers the prospective interest in home buyers from mainland China in terms of  pricing, motivation, and levels of interest between conventional and top-tier real estate in Vancouver, Calgary, Toronto and Montreal. The report does take into account the impacts of the recently imposed 15% property transfer tax on foreign buyers in Metro Vancouver.

Some Key Takeaways:

Education was the most commonly cited motivation for Chinese interest in Toronto, Vancouver and Montreal followed by personal use.

The single highest motivation for Juwai.com property enquirers interested in Calgary real estate was “own use”, at 62%.

27% of Toronto and Vancouver enquirers, and 23% and 21% of Montreal and Calgary enquirers, indicated that investment was a motivation.

Immigration was the least frequently cited motive.

57% of Juwai.com property enquiries in Vancouver, 67% in Calgary, and 68% in both Toronto and Montreal fell below $655,050 ($500,000 USD) in 2016.

The median prices for Juwai.com property enquiries –$590,200 in Vancouver, $531,115 in Calgary, $458,928 in Toronto and $488,012 in Montreal

After the imposition of the 15% tax in Vancouver, there was a noticeable shift in the market;

Vancouver listings enquiries on Juwai.com fell 81% year-over-year in July 2016, the month the foreign buyers’ tax was announced, and 78% year-over-year in August when the tax took effect.

Sotheby’s International Realty Canada experts observed that increased interest from Chinese property enquirers did not result in matching surges in sales activity from this cohort in alternative markets.

The results were somewhat different in properties 1 Million and over;

In Vancouver property enquiries for real estate over $1 million fell 67% year-over-year in the third quarter of 2016 in the month the 15% foreign buyers’ tax was implemented, but rebounded with an 18% year-over-year increase in the last quarter

Toronto properties over $1 million experienced only a nominal, 2% year-over-year uptick on Juwai.com in the third quarter of 2016 following the implementation of the Vancouver foreign buyers’ tax, before ending the fourth quarter with enquiries up 18% year-over-year

As in the case of the conventional real estate market, rising interest in luxury real estate in Toronto, Calgary and Montreal did not result in matching gains in sales activity.

Read or download the full Sotheby’s International Realty Canada Report

 

 

 

PWC Report On Emerging Trends In Real Estate 2018

PWC Report On Emerging Trends In Real Estate 2018

PWC report on emerging trends in real estate 2018 is a must read. It’s an interesting and informative report on the Canadian real estate outlook for 2018. The PWC report zeros in on the types of real estate which hold promise in 2018, amidst the changing landscape of commercial, development, and investor portfolios. It identifies where the projected opportunities will be along with ranking the Canadian provinces in order of their real estate market potential outlook.

The economic trends and forcasts are helpful in showing us by province, the actual employment, unemployment, GDP, and personal income stats. We can clearly see the growth from 2016 to 2017 across most market sectors, but the projections for 2018 in some provinces, are projected to be lower.

Read the full report:

Emerging Trends in Real Estate 2019 | PwC Canada

Warehousing and fulfillment represent the top development prospects among survey respondents. With increased need for last-mile delivery and e-commerce facilities, logistics and fulfillment continue to be a major opportunity for creating value. As tenants look for increasingly larger spaces, vacancy rates are tightening and rents are rising.

Download the PWC report: