Montreal Real Estate Stories The Week Of August 5th

Montreal Real Estate Stories The Week Of August 5th

Montreal Real Estate Stories The Week Of August 5th – Some of this week’s headlines:

The Urban Design Conundrum About Transit Oriented Development

Montreal’s Plan métropolitain d’aménagement et de développement represents the long term plan for housing projects to be built around TOD (transit oriented development).  The plan represents homes to be built between 2011 and 2031 strategically located near metro stations. Although this sounds like an ideal arrangement, Vancouver’s former city planner Brent Toderian has this to say: “the issue is that designing well-planned, livable places is about so much more than just building homes near transit. “I almost don’t even use the term (TOD) now. Transit isn’t the top priority. If we’ve created the right density, land-use mix and public realm design, people will walk and bike, which are higher priorities than just taking transit. Better than getting them to the transit station, we can get them to go to the downtown (area) and stay there. Some will take transit, but that’s how downtowns function. There are choices. By putting the pedestrian experience at the top, Toderian says, the design capitalizes on what he calls “the power of nearness.” When the things you need in your daily life are close by, it just makes sense to bike or walk.”

Read the full article:

Montreal real estate: Developers should put pedestrians before transit

Until recently, transit-oriented development, also known as TOD, was a term familiar only to those who enjoy geeking out on urban planning concepts. (Let’s just say it’s a fairly limited audience.) But Montreal’s Plan métropolitain d’aménagement et de développement, which sets a course for how Montreal will grow and evolve as a city in the near future, has identified 155 TOD zones in the Greater Montreal area.

Personally,  although I think having easy access to public transportation is a no brainer, the assault on the automobile in cities is insanity. Winters here in Montreal come with long and severe bouts of extremely cold weather. From Dec. 27 to Jan. 1, of 2018 the maximum temperature in Montreal did not rise above –17 C. This six-day stretch is the longest such cold streak on record, based on data going back 146 years. Montreal is not California and automobile convenience and usage will not change anytime soon. Having no place to park in the downtown core or other neighborhoods like Griffintown will only create more frustration, and a serious strain on our most valuable resources. The loss of time, the increased use of gas and carbon dioxide spewed into the environment makes no sense. Families are encouraged to move into the downtown core yet spaces and access to parking are not designed with their needs in mind.

https://www.cbc.ca/news/canada/montreal/montreal-cold-weather-streak-1.4470272

The overall state of the Montreal Real Estate Market – Montreal vs Toronot and Vancouver

5 Reasons why Montreal’s real estate market will never match Vancouver’s or Toronto’s

Uploaded by Montreal Gazette on 2018-06-04.

Latest Montreal market news:

Sales

  • The 4 per cent increase in sales in the second quarter of 2018 represents the sixteenth consecutive quarterly sales increase in the Montréal CMA.
  • Condominiums remained the most dynamic property category with a 13 per cent jump (5,120) in the number of transactions, while plexes (1,332) registered a modest increase of 1 per cent.
  • Sales of single-family homes (8,301) fell for the first time since the second quarter of 2014 (-1 per cent)

Median price

  • The median price of single-family homes ($322,509) and condominiums ($253,000) in the Montréal CMA continued to rise, growing by 3 per cent for both property categories. The median price of plexes with two to five dwellings ($510,000) also continued to increase (+6 per cent).
  • Like in the previous quarter, the Island of Montréal and Vaudreuil-Soulanges stood out with the largest increases in median price, at 7 per cent and 12 per cent, respectively.
  • These two areas also stood out for their increase in the median price of condominiums: +5 per cent on the Island of Montréal and +6 per cent in Vaudreuil-Soulanges.

Active listings

  • On average, just over 24,000 residential properties were listed on the Centris system in the second quarter of the year, the lowest second-quarter level since 2010.
  • This also represents a 17 per cent decrease compared to the second quarter of last year and the eleventh consecutive quarterly drop in active listings.

The Montreal CMA is in a seller’s market.

Information source via Centris and the QFREB

Read the full Barometer Report

 

Montreal Real Estate Market Stories July 2018

Montreal Real Estate Market Stories July 2018

Montreal real estate market stories July 2018 – latest market news:

  • According to the Canadian Real Estate Association (CREA), 60% of all Canadian markets saw increased activity in June.
  • Canadian home sales increased by 4.1% between May and June.
  • Actual (not seasonally adjusted) activity was 10.7% lower than in June 2017.
  • June’s MLS® Home Price Index (HPI) increased by 0.9% year-over-year
  • National home sales increased by 4.1% in June 2018 compared to May. While this is a substantial monthly increase, sales remain low when compared to June of last year.
  • Slow activity in the Canadian market can largely be attributed to tightened mortgage regulations and increased interest rates.
  • Home prices rose by 6.4% in Greater Montreal. Montreal’s market was led by a 7.4% increase in Townhouse prices
  • Apartment units across the country recorded the highest gains in June (11.3%) followed by townhouses (4.9%), when compared to May 2018.
  • Real estate in Montreal has appreciated by 6.4% versus 4.7% in the rest of Canada in 2018
  • Greater Toronto Area and Greater Vancouver  markets are being slowed down by year-over-year declines
  • Weekly earnings in Quebec have been rising more quickly than any other province, since November 2017 while inventory is expected to continue decreasing for the remainder of 2018.
  • The median price of condos in Montreal increased to 3%, reaching $315,192
  • Montreal’s West Island recorded the highest appreciation rate in the GMA, increasing by 18.8% to $570,778. The borough has witnessed the strongest price growth with about a quarter of home sales above asking and condominium sales up by 12.4%. 

According to Royal Lepages Market Report “Greater Montreal Area home price appreciation surpasses the national average for the first time in seven years. ● Montreal’s real estate market performed better than the majority of Canadian markets during the second quarter of 2018 ● Montreal’s west island home price appreciation among the highest in Canada at 15.3 per cent ● Royal LePage forecasts the median price of a home in the Greater Montreal Area to increase 1.8 per cent during the third quarter of 2018”

“Quebec’s good economy and robust job market continued to fuel demand during the second quarter, which lifted prices and created overall stability in the Greater Montreal Area’s real estate market,” explained Dominic St-Pierre, Senior Director, Royal LePage, Quebec Region. “Across all housing types, sellers are significantly benefiting from low inventory.”

New Quebec provincial system to track foreign buyers data

The Quebec government recently adopted Bill 1505 which includes tracking measures for real estate transactions carried out by foreign buyers, which should be up and running by the end of 2018. “

Royal Lepage Market Report finds the condominium segment on the Island of Montreal shifts to a seller’s market for the first time in five years. “Low inventory drives multiple offers in the single-family home market ● Steady rise in single-family home price appreciation pushes demand towards condominiums ● Montreal Centre and Montreal West dominate the market with the highest price increases in the two-storey home segment.”

Read the Royal Lepage Market Reports

Read the Latest RBC Housing Report – Market Update July 2018

The Bank of Canada raised it’s key interest rate in July 2018

Bank of Canada delivers another hike, key interest rate rises to 1.5%

As widely anticipated by economists, the Bank of Canada (BoC) raised its trendsetting policy rate to 1.5 per cent, up from 1.25 per cent on Wednesday. It was the fourth rate increase in the last 12 months. READ MORE: Here goes another rate hike.

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Bank Mortgage Rates

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Average Prices Per Square Foot Across 18 Boroughs of Montreal

Average prices per square foot for single family home land, across 18 Montreal boroughs:

Greater Montreal Sectors Average Price ($) Per Square Foot
1 Montreal 44
2 CDN/NDG 69
3 Lachine 37
4 Lasalle 48
5 Plateau 141
6 South West 57
7 HOMA 43
8 Montreal North 37
9 Outremont 141
10 Rosemont 68
11 Saint-Laurent 50
12 Saint-Leonard 45
13 Verdun 72
14 Ile des Soeurs 92
15 Ville Marie 116
16 Villeray – St Michel 60
17 Mont-Royal 90
18 Westmount 143
Data source via Shupilov real estate

Other Stories happening around Montreal

Three new beaches coming to Montreal

The fight for the preservation of Pointe Claire Village

Builders can’t keep up with the demand for condos downtown

The five largest condo projects started in the last quarter

Montreal Real Estate Stories April 25th 2018

Feature photo ©Bonnie Meisels

Montreal Real Estate Stories April 25th 2018

Montreal real estate stories April 25th 2018 begins with the STM, Société de transport de Montréal which announced it’s plans to construct a nearly 300-unit housing project near the Frontenac metro station.

This is the first time the STM will be providing housing for Montrealers, and not just transportation services. The project is “a first step toward the development of its real-estate holdings,” said chairman Philippe Schnobb.

“The complex, consisting of four buildings ranging from two to 12 storeys, will be built on a 54,200-square-foot parking lot owned by the STM. It will include 60 subsidized units for low-income residents, 109 affordable condos, 129 market-price condos and a two-storey office building for the STM.

About 45 per cent of the units will have two bedrooms, about 35 per cent will have one bedroom, and between 12 and 22 per cent will have three. It will include 213 underground parking spots.”

The project will be managed by STM subsidiary, Transgesco. It is being considered an example of transit-oriented development (TOD) — projects built to encourage the use of public transportation.

Construction will start in the summer of 2019 and be completed in 24 months, said STM spokesperson Amélie Régis.

Read the full article below:

STM launches real-estate project near Frontenac métro station

Montreal’s transit corporation is branching out from transporting Montrealers to giving them a place to call home. The city and the Société de transport de Montréal announced Wednesday a plan to construct a nearly 300-unit housing project near the Frontenac métro station.

http://accescondos.org/en/a-new-acces-condos-accredited-project-close-to-the-frontenac-metro-station-in-2021/

Many reports were released in April, from the Canada Mortgage and Housing Corporation (CMHC), Royal Bank, Crea, and Cushman and Wakefield to name just a few. All put together, this will provide a comprehensive snapshot of where our real estate market and economics are at both locally and nation wide.  We’ll start with the CMHC’s quarterly report.

 

Montreal’s CMHC Housing Market Assessment – First Quarter 2018

The (CMHC) Canada Mortgage and Housing Corporation  just released its first quarter assessment for 2018. The CMHC evaluates real estate vulnerability, prices and construction at both the national and provincial levels.

When prices are overvalued, homeowners and mortgage lenders are at risk of a housing bubble. Tighter inventory supplies have kept the montreal real estate market strong and a sellers market in certain neighborhoods. Although the market is healthy, there’s little evidence of overheat. There is weak evidence of price acceleration and the agency believes most of the market’s price movement is based on fundamentals at this time.

Here are some interesting stats from the CMHC comparing Montreal market sales numbers from 2017 to 2018, along with the monthly unemployment rates, salaries and mortgage rates as they’ve changed.

 

 

Check out the CMHC map of comparison of housing starts:

 

 

While Montreal’s market has enjoyed strong sales in the first few months of 2018 with low vulnerability, the same can’t be said for some of the other Canadian provinces. High vulnerability was found in several provinces.

Chart source via CMHC

CMHC-Canadian-Real-Estate-Is-At-A-22High22-Degree-of-Vulnerability-Right-Now-Chart

 

Chart comparison of sales across the provinces from 2017, along with forcasts for 2018 and 2019

Chart source via CREA

Crea Canadian Sales And Forcasts Charts 2017 - 2019

Crea’s National Price Map

Mortgage Rate Update for April

The bank of Canada decided to hold it’s key interest rate at 1.25% for now, but further rate hikes are still in the picture. Growth slowed down to 1.3 per cent in the first three months of the year. The impact of new federal mortgage rules and other housing policies succeeded in cooling off the real estate market in the first three months of 2018. The next rate hike is expected in July.

 

“The bank, for 2018, is now predicting two per cent growth, as measured by real gross domestic product, compared to its 2.2 per cent prediction in January. The bank raised its growth projection for 2019 to 2.1 per cent, up from its previous prediction of 1.6 per cent, before easing to 1.8 per cent in 2020. It noted that these readings would still be slightly above Canada’s estimated potential output for the next three years.”

RBC Poll: Canadians Reveal Highest Home Purchase Intent in Eight Years

In summary, the recently released RBC poll shared these findings:

  • Annual RBC Home Ownership Poll* reveals 32 per cent of Canadians are likely to buy a home in the next two years, up seven percentage points over last year
  • More millennials (ages 18-34) are intending to become homeowners as employment anxiety eases and are expressing the strongest of those homebuying intentions (50 per cent)
  • Home owners spent five weeks searching online for their current home
  • One in five Canadians received financial assistance from their family to help with their down payment
RBC Royal Bank-Confidence Boost- Canadians Reveal Highest Home P
One third of Canadians say they are likely to purchase a home in the next two years: RBC Poll (CNW Group/RBC Royal Bank)

“Four-in-10 (39 per cent) Canadians are aware of the latest Stress Test Guidelines issued by the Office of the Superintendant of Financial Institutions (OSFI) for uninsured mortgages, and over half (55 per cent) indicate that the guidelines are impacting their purchase decisions. This includes making higher down payments (25 per cent), delaying home purchases (19 per cent) or buying a less expensive, smaller home or a less expensive one in a different location (18 per cent respectively). As intention to buy continues to climb in Canada, just over one one-third (35 per cent) of Canadians indicated they had received/would be receiving financial assistance from their family for a down payment, while almost an equal number (36 per cent) plan to do it on their own with a dedicated savings account.”

In conclusion, despite all the new Government changes and regulations, Canadians are still feeling optimistic about getting into the housing market. They are just getting more prepared and informed. In fact, the top two homebuying challenges buyers face are: choosing the right property (32 per cent) and deciding how much they can afford (21 per cent). Nearly one-in-10 Millennials said they would purchase a home without ever physically seeing it. Overall, Canadians value being able to “visit” virtually, with almost half (49 per cent) saying they looked at photos/videos of prospective homes online. Finally, to help determine costs and affordability, 39 per cent of home owners took valuations of neighbouring homes into account, and 36 per cent used affordability calculators. Millennials believe that a home purchase is a good investment – in fact, 84 per cent responded it’s a “very good or good investment” and are reporting an increased likelihood (11 per cent) of buying a home within the next two years.

Over half (61 per cent) of Canadians are very or somewhat concerned about interest rate increases – a jump of almost 10 per cent from last year. Over one-third (35 per cent) are thinking about buying a home sooner because of current low interest rates, while another one-third (32 per cent) were also thinking of doing so because of a potential increase in interest rates.

**These were the findings of the annual RBC Home Ownership Poll conducted by Ipsos from January 9 – January 24, 2018 on behalf of Royal Bank of Canada  Access the full report