The price of a single-family home has fallen by 10%, between 2022 and 2023. It is now at $809,000 nationally – which includes both resales and new construction, calculates Royal LePage in its forecast for the market published on Thursday. Which obviously hides some great differences. In Montreal, the average value of this detached house is more like $616,000, down slightly.
On the other hand, condo prices are on the rise, slightly – to an average of $450,000 in the Montreal area. Phenomenon driven by a movement of baby boomers who are beginning their retirement, explains broker Marc Lefrançois. He points out, however, that the market is still difficult to predict since one would have thought that this segment of the population is moving more towards smaller, now. However, several seem to be delaying the movement. “Co-ownership is the perfect choice for them,” says Marc Lefrançois. Not the smaller 600 sq. ft. condos more geared towards first-time buyers, he says, but the larger condo or the old converted plex.
Seen on the streets of Montreal, the for sale signs are back – and so are the “sold” banners! The recovery in sales is seen in several markets: in Greater Montreal, the increase is 32% from February to March 2023. There are also more properties available on the market – an increase of 20%.
Buyers should be careful, says Marc Lefrançois, licensed real estate broker at Royal LePage Tendance. According to him, we have just gone through what was perceived as “a buyer’s strike”, so this recovery should not be seen as an El Dorado for buyers, which some mistakenly believe.
According to Marc Lefrançois, we are currently witnessing a game of musical chairs: buyers will change their target neighborhood to access a property that meets their criteria. A young family looking for a house in Westmount is now visiting Mount Royal, explains the broker, a specialist in the Montreal market.
In this atypical market, buyers are more optimistic than they used to be: 35% of Quebecers expect to pay less for their home than if they had bought it last year, reveals the RBC Annual Survey on trends in the residential market. This survey shows several distinctions between Quebecers and all Canadians when it comes to behavior regarding real estate. For example, seven out of ten respondents (68%) do not want to give money to a family member who wants to buy a house, compared to the national average of 58%. Which doesn’t necessarily mean Quebecers are tight-fisted or lacking in housing compassion: four in ten say they’re willing to help a family member or child by letting them live at home longer. This is still relatively low compared to the national average.
This buyer optimism is in danger of being undermined: according to Royal LePage forecasts, property prices will go up because there is still not a lot of inventory. A 3% increase is expected this year.
In the high-end market, activity is also less important, explains Marc Lefrançois, of Royal LePage. We are talking about houses over a million dollars, often bought by owners who are in the process of upgrading real estate. “With interest rates at 5% when they were at 2%, people are thinking twice,” the broker says.
“On the other hand, what is below $1,000,000 – $800,000, things are happening in Montreal,” he continues. In neighborhoods like Villeray or Rosemont, there are several offers when the properties are well listed. »
In Canada, the increase is estimated at 4.5% in the fourth quarter of 2023, compared to the same quarter of 2022. “Royal LePage’s previous forecast has been revised upwards to reflect the faster than expected recovery observed. in major housing markets across the country. »
