Activity in the residential sales market picked up steam last month in the Montreal area, causing some surprise.
Transactions registered a slight increase of 1% compared to the same month last year. This is the first increase on an annual basis since 2021. However, specialists do not expect an acceleration in transactions in the coming months due to recent interest rate hikes and the looming economic slowdown. .
“The North Shore of Montreal (677 sales) and the South Shore of Montreal (725 sales) recorded a respective decrease of 13% and 2% in sales. Vaudreuil-Soulanges (132 sales) and Laval (285 sales) recorded a slight increase in sales with variations of 3% and 5%. The Island of Montreal and Saint-Jean-sur-Richelieu sectors, with 1198 transactions and 81 transactions, stand out with increases of 12% and 23% compared to the same period last year,” we read in the press release released Friday by the Professional Association of Real Estate Brokers of Quebec (APCIQ), on its July data. They are based on the provincial Centris database of real estate brokers.
With 14,820 properties for sale, the number of active listings increased in July 2023 compared to listings in July 2022, but they are slightly down from June 2023. Selling times continue to lengthen, twenty days compared to the situation 12 months ago.
Median prices stabilized in July: $555,000 for a house, $395,000 for a condo and $735,000 for a rental building with 2 to 5 units.
The midpoint divides a sample into two equal parts. Thus, a median price of $555,000 means that half of the homes sold in July were priced below $555,000.
As the drop in mortgage rates is no longer imminent, buyers who can afford it have decided that there is no point in waiting and have taken action by acquiring a property, explains the APCIQ. Then, according to Association economist Charles Brant, the decline in prices is pretty much over for 2023 and we are heading more towards a stabilization in values. He does not say for 2024.
“This little resurgence in July looks like a pretty tentative thing considering we’re at a turning point in the economy,” Brant said. The market nevertheless remains supported by structural elements such as the lack of supply and strong immigration.
“For the coming months, although strong population growth will provide support to the market, warns Mr. King of the National Bank, the resumption of the Bank of Canada’s monetary tightening cycle and the slowing economy should maintain the number of transactions below its historical average. »
1%: increase in transactions between July 2023 and July 2022
20%: change in properties for sale in a year
1%: increase in house prices compared to July 2022