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13 Mar

Number of homes sold for more than $1 million rises 20% in Montreal

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Posted by: Frederic Pichette

The number of properties sold in Montreal for more than $1 million rose 20 per cent from 2016 to 2017, according to a new report published by Sotheby’s International Realty Canada.

The number of properties sold in Montreal for more than $1 million rose 20 per cent in 2017, according to a new report published by Sotheby’s International Realty Canada, based on data from real-estate boards.

A total of 734 properties sold for more than $1 million, according to the report, up from 613 the year before, with growth limited by the available supply.

It’s the second year in a row that the “top-tier” market has seen similar growth: the number of properties sold for more than $1 million rose by 23 per cent in 2016 compared with 2015.

While Montreal has always had a well-developed real-estate market, it has been held back by fears of political instability, said Brad Henderson, the president and CEO of Sotheby’s International Realty Canada.

That perception is changing.

“Over the last number of years, the political situation has been very predictable and very stable, and I think that’s gained a lot of confidence from businesses and consumers and a willingness to look at Montreal on a more positive note,” he said. “The hyper growth of real-estate prices in Vancouver and Toronto have made Montreal a comparison bargain in terms of real-estate values, and that’s not just for investors — it’s also for developers and homebuyers.”

 At the highest end, the number of homes that sold for more than $4 million rose from nine in 2016 to 12 in 2017, a 33-per-cent increase, the report found.

The number of condos selling for more than $1 million also rose, to 122 from 82, a 49-per-cent increase. Of those, two sold for more than $4 million.

“The demand for residential real estate in Montreal is from people who live and work in Montreal more than it is foreign investment. It is the health of the Montreal economy. It is the stability of the Montreal job market that is contributing to the demand for growth,” Henderson said.

In Westmount, the average selling price of a single-family home in November was $3,230,286. The Town of Mount-Royal and Outremont also had average selling prices of more than $1 million in November.

“The first and foremost rule of real estate is that it’s location, location, location, and so it’s not surprising that places in Westmount, Mount-Royal or Outremont are going to be higher demand and, as a consequence, are going to have buyers who are expecting higher quality, and that means higher ceilings, potentially more glass, potentially more smart, intelligent systems inside the home and a lot more amenities available either in the building or in the local area,” Henderson said.