Residential sales in the Montreal CMA significantly declined in October compared to the same period in 2021. There were 2,770 units sold, which adds up to a 35 per cent decrease, according to the newest data from the Quebec Professional Association of Real Estate Brokers (QPAREB).
The slowdown in activity continues across all property categories as sales of single-family homes and small income properties hit new lows, levels not seen since 2000. However, plex sales (284 sales) and condominium sales (1,027 sales) experienced the largest annual decline, falling by 42 per cent and 38 per cent, respectively. Single-family home sales were also down, with 1,456 transactions, a decrease of 32 per cent.
“The magnitude of the increase in interest rates in the space of a few months and the inflationary context that is eroding the purchasing power of households are obviously the main causes,” notes Charles Brant, director of the QPAREB’s Market Analysis Department. “We must also note a more cautious attitude among households and investors who would have the financial capacity to carry out their purchasing project, but who prefer to wait for the situation to stabilize and for market conditions to be more favourable.”
A market rebalancing is well underway, he adds, mainly from an accumulation of the “least desirable” properties that now seem too expensive or need renovations.
“However, the portion of properties offering a reasonable quality-price ratio always finds takers, who have been on the lookout for several months and are often already owners,” he says. “These buyers are finally taking advantage of a market where the purchase conditions are more reasonable, less competitive, although still fundamentally favourable to sellers.This situation explains in part a certain resistance to price decreases following a rapid adjustment observed over the past few months and in large part due to the sharp decrease in overbidding.”
Condo prices haven’t increased since last October
Average prices in the CMA are now comparable to those of last year for this same period, erasing most of the gains of early 2022. The median price in the plex market was $700,000, which represents a $10,000 decline from October 2021 or a 1.4 per cent decrease. The median price of single-family homes, on the other hand, experienced a smaller annual decrease of 1 per cent, reaching $510,000. With a median price of $380,000, or an annual variation of $100, the price of condominiums has not increased at all.
Downward sales trend across large sectors
The Island of Montreal, with 964 transactions, stood out from the others by recording a 43 per cent decrease in sales, which was higher than the average for the Montreal CMA.
The large sectors of Vaudreuil-Soulanges (132 sales), the South Shore of Montreal (615 sales) and Saint-Jean-sur-Richelieu (75 sales) registered decreases of 34 per cent and 32 per cent, respectively.
Following them are the large sectors of Laval and Montreal’s North Shore, which, with 289 and 695 transactions, registered significant decreases compared to the same period last year, albeit below the 30 per cent mark, at 29 and 26 per cent.
