11 Sep

Montreal real estate market sees busiest August on record

Latest News

Posted by: Frederic Pichette

A total of 2,899 residential properties were sold during the month of August, up 8 per cent over that period last year.

Montreal GazetteMONTREAL GAZETTE

More residential properties were sold in the Montreal region this August than in any August on record, according to the Greater Montreal Real Estate Board.

A total of 2,899 residential properties were sold during the month, an increase of eight per cent from the equivalent period last year, when 2,683 properties were sold.

However, the number of sales was down almost six per cent from the month before, when 3,075 properties were sold.

The Island of Montreal saw the biggest increase in sales, with total sales rising 12 per cent, to 1,257 this year from 1,120 in August 2016.

Across the region, condo sales saw the biggest gain of any property type, rising 19 per cent to 1,002, from 844 in August 2016.

Median prices were also up, both from the previous year and the previous month.

The median price of a single family home rose to $325,000, an increase of six per cent from $308,000 in August 2016. Median prices were up slightly from $323,000 in July.

While condominium prices were up one per cent year-over-year,  to $251,500 from $250,000, they were down almost two per cent from July, when median condo prices reached $256,000.

The number of active listings was down 15 per cent, year-over-year, to 24,031.

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3 Sep

Housing prices in Montreal reached a new high in July

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Posted by: Frederic Pichette

For the second consecutive month, housing prices in Montreal reached their highest level on record in July, according to the Teranet-National Bank House Price Index.

The index, which tracks the resale price of homes, rose 1.63 per cent in the Montreal Census Metropolitan Area from June to July.

It was up 3.25 per cent from July 2016.

The increase in prices is being driven by increased sales, buoyed by a strengthening labour market and a decline in new listings, said Marc Pinsonneault, a senior economist at the National Bank of Canada.

Given those conditions, the price increases aren’t surprising, he said.

However, there were predictions that changes made to mortgage loan insurance rules last fall — which were intended to ensure that buyers would be able to afford their mortgage payments if interest rates rose — would slow growth.

“People were fearing that first-time buyers will be put on the sidelines and the market would soften again in Montreal, but just the opposite happened. Maybe the regulation did have some effect, but it was dwarfed by the behaviour of the labour market,” Pinsonneault said. “There’s been quite a turnaround in Quebec on that front, especially in Montreal.”

The index, which uses June 2005 as a base, reached 159.4 for the Montreal area in July. That means prices have risen 59.4 per cent since June 2005.

It was 156.84 in June. The previous high was July 2016, when the index reached 154.38.

jserebrin@postmedia.com