The Montreal real estate market is maintaining a strong performance that experts now predict will continue into the next decade. The entire metropolitan area, including Laval, the South Shore, and northern suburbs like Mirabel, are experiencing positive signs of healthy growth. Average prices and the number of transactions have continued to increase in the entire metropolitan area, and selling times are also shrinking.
What’s Happening in Montreal’s Market?
The Montreal real estate market is experiencing enormous success even longer than expected, with rising prices and faster sales. Real estate is in high demand in part due to Quebec’s flourishing economy. Low-interest rates are also a major factor. These factors have combined to create wage increases and more buying power. Immigration and a lack of supply in Montreal’s central neighborhoods are also at play.
If anything, the Montreal real estate market is competitive. Some are concerned about problems with dwindling supply, but construction projects and infrastructure renovations are sure to help alleviate supply issues. These construction projects can often be for rental units, however, so those interested in real estate in the city should expect to combat a supply deficit for the next couple of years.
Year Over Year on Mt. Royal
In October of this year, Montreal experienced its 49th consecutive month where the number of properties on the market declined. Approximately 16,900 residential properties were listed in October. This is a 20 percent decrease from October of last year and the biggest decrease in October since 2002.
Due to this scarcity, the Montreal real estate market is expected to retain this strong surge at least into 2021. While experts are predicting a slight slowdown in 2020, they expect a supply deficit to continue and for interest rates to stay low. Interest rates are currently averaged 5.19 percent for five-year mortgages, down from 5.34 percent one year earlier. These factors combined are anticipated to create another strong year for the city’s housing market.
Sales Numbers for the Record Books
The vast majority of property types are experiencing faster sales. Single-family homes sold in October were only on the market for an average of 59 days. This is 15 fewer days than a year ago. Condos were only on the market for an average of 69 days, the shortest listing time average since 2004.
Plexes sold on average in 74 days, just four more than October last year. Last month alone, 4,211 residential sales were completed in the Montreal real estate market. This is a 14 percent increase over October 2018. It is clear that Montreal real estate will continue to experience great success in the near future.