25 Sep

Greater Montreal home sales in August up eight per cent from year ago

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Posted by: Frederic Pichette

The Greater Montreal Real Estate Board says there were 3,224 home sales last month, marking the 41st consecutive month of rising home sales.

MONTREAL — The Greater Montreal Real Estate Board says August home sales in the region were up eight per cent compared with the same month last year, hitting a new record

The board says there were 3,224 home sales last month, up from 2,972 a year ago, marking the 41st consecutive month of rising home sales.

The increase came as single-family home sales increased five per cent to 1,777 compared with 1,685 in August last year, while condominium sales grew 12 per cent to 1,125, up from 1,004.

Sales of plexes, which include two to five units, totalled 318, up from 279 in August 2017.

The median price of a single-family home was $333,000, up from $318,000 a year ago, while the median condominium price was $260,000, up from $250,000. The median plex price was up 10 per cent at $515,000 compared with $470,000 a year ago.

The number of active listings was down 16 per cent at 20,940, while new listings were down two per cent at 4,785.
13 Sep

Housing starts decline for second month, signalling high borrowing costs are starting to bite

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Posted by: Frederic Pichette

The declines were led by Montreal and Toronto, with respective declines of 35 % and 27 % compared to 2 % in Vancouver.

Canadian housing starts declined for a second month in August, adding to evidence that higher borrowing costs are slowing the market.

Work started on 200,986 homes last month at a seasonally adjusted annual pace, a decline of 2.3 per cent, Canada Mortgage and Housing Corp. reported Tuesday from Ottawa. Multiple-unit projects declined by 2.4 per cent and single-detached starts by 2.6 per cent. Economists surveyed by Bloomberg News expected a pace of 216,300 units, according to the median estimate.

New residential construction has been gradually falling from elevated levels late last year and early 2018 as builders cope with the impact of higher interest rates. At the current pace, third-quarter home starts are on track for possibly the slowest quarterly pace since 2016.

“A more sluggish pace to home-building is in line with our expectation that higher interest rates and tighter lending standards turn this former stalwart of growth into a drag on the economy,” Royce Mendes, an economist at CIBC Capital Markets, said in a note to investors.

By city, the declines were led by Montreal and Toronto, with respective declines of 35 per cent and 27 per cent on the month. Vancouver starts declined by 2 per cent.

“This moderation brings total starts closer to historical averages, largely reflecting recent declines in the trend of multi-unit starts from historically elevated levels earlier in the year,” Bob Dugan, CMHC’s chief economist, said in a statement.