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6 Jun

Real Estate: Growing number of homes being sold over asking

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Posted by: Frederic Pichette

CTV Montreal
Published Wednesday, May 30, 2018 1:36PM EDT 
Last Updated Wednesday, May 30, 2018 6:25PM EDT

There are more signs that Montreal has become a seller’s market for real estate as the number of properties for sale has dropped.

The Greater Montreal Real Estate Board says the percentage of homes being sold above asking price has increased compared to last year, to a point where 10 percent of sellers are getting more than they asked for.

There are now bidding wars taking place in neigbourhoods where turnover is low, notably the Rosemont-La Petite Patrie borough, Verdun, and the Plateau-Mont Royal borough.

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Real estate agents say the most desired properties are duplexes, triplexes, and small apartment buildings, with some selling prices being $15,000 over asking.

On the West Island the announcement of the REM has apparently sparked interest in Pointe Claire, Kirkland, and Dollard des Ormeaux, with about 20 to 30 percent of homes in those neighbourhoods selling for more than the asking price.

This comes as the number of properties for sale has dropped about 17 percent in the past year.

Real Estate broker Amy Assaad said the number of sales over asking is unusual, but that an overall increase in prices is normal.

“I see the market being consistent. I see an increase of between six to eight percent for homes depending on the area. I don’t forecast a bubble whatsoever,” said Assaad.

She said unlike Toronto and Vancouver, which have seen slumps in sales as people find those markets are becoming too expensive to afford, Montreal and the surrounding area have a lot of potential to grow.

“There’s always been a consistency with Montreal. It’s an attractive city, it’s a metropolitan city. We have a great educational system, great transport system. The economy is great. There’s a lot more people moving here and basically there’s a lot of great press right now about our city and I think that’s what’s also gaining confidence in the marketplace,” said Assaad.

The increase in the prices is apparent throughout the province, with 7.2 percent of homes in the Gatineau area, and 5.8 and 5.5 percent around Quebec City and Trois Rivieres respectively, being sold above asking price,