22 May Montreal Real Estate Sales Up 10%
Montreal Real Estate Sales Up 10%
Montreal real estate sales were up 10%. The most recent statistics record 5,432 residential sales in April 2018, which is 10% higher than April of last year. This is the best April since 2010, and Montreal’s 38th consecutive monthly increase in sales. The South Shore led the way at 15%, followed by 13% in Saint-Jean-sur-Richelieu and 12% in Laval with sales on the Island of Montreal showing an increased of 6%.
While both plexes and single family homes enjoyed a sales increase of 6%, it was condominium sales that performed the best in April, with an 18% increase in transactions year over year. From 2017 to 2018, single family homes had a price appreciation of 6% while condominiums had a price increase of 2%.
What’s most noticeable is the decline in inventories in certain markets in Montreal. According to Paul Cardinal of the Quebec Federation of Real Estate Boards, the growth in the real estate market is being driven by the stronger local economy.
“We’ve had in Montreal a spectacular improvement in our employment market over the last two years,” he said.
There’s also been an increase in net-migration to Montreal and consumer confidence is at the highest level in 15 years, Cardinal said.
“You combine that with low interest rates and you have a strong demand for housing,” he said.
Despite increasing sales and declining inventory, Montreal doesn’t appear to be heading toward the type of runaway price growth that was seen in Toronto and Vancouver.
Cardinal said the number of months of inventory — the ratio of active listings to sales — is close six for single-family houses and plexes in Montreal. It’s 8.5 for condos. In the Toronto area, the supply of inventory is three months for single-family houses and four months for condos.