A lack of new residential listings is “undermining the level of supply and sales for the Montreal Census Metropolitan Area,” says the latest market statistics report from the Quebec Professional Association of Real Estate Brokers (QPAREB).
The report is “based on the real estate brokers’ Centris provincial database.”
“The downward trend in sales continued in August, and can be explained by several factors combined,” stated Charles Brant, director of the QPAREB’s Market Analysis Department. “These include a historically low inventory of properties for sale and a more typical summer season in terms of sales— as opposed to last year when sales were exceptionally high due to the fact that the market was on pause during the spring.
“Also, year-to-date sales have increased by only 11 per cent compared to last year,” he added. “While the overheated market is well established, with price increases that remain substantial compared to last year, the proportion of sales concluded above the asking price is weakening. This reflects the shrinking pool of buyers with the financial capacity to buy in this market and explains the current stabilization of prices, particularly for single-family homes.”
For August of this year, the association’s report says “3,372 residential sales transactions were concluded in the real estate brokers’ Centris system in August, a 30 per cent decrease compared to August of last year, thereby reinforcing the downward trend in sales that has been evident since early spring.
“In terms of year-to-date sales, they are only 11 per cent higher than the first eight months of last year. In July, year-to-date sales were 17 per cent higher than last year.”
As well, “sales on the Island of Montreal fell by 27 per cent compared to August of last year. For a third consecutive month, single-family homes registered the largest decrease in sales at 39 per cent.”
Sales also decreased off-island, “caused by a slowdown in single-family home sales: Vaudreuil-Soulanges (-43 per cent), the South Shore (-34 per cent), the North Shore (-34 per cent), Laval (-27 per cent) and Saint-Jean-sur-Richelieu (-13 per cent).”
The QPAREB report points out that “three main property categories registered a drop in sales compared to August of last year.
“Sales of single-family homes fell by 37 per cent, while sales of condominiums decreased by 28 per cent. Plexes were less affected by the August slowdown, as transactions fell by only four per cent.”
There was also 10,238 active listings on the Centris system, representing “20 per cent fewer properties than in August of last year.
“In terms of year-to-date statistics, the number of properties available for sale in the CMA tumbled by 20 per cent, a phenomenon accentuated by low levels of new listings that have been ongoing for several months now.”
Also, “median prices continued to rise sharply in August, reaching $500,000 for single-family homes (+17 per cent), $375,000 (+20 per cent) for condominiums and $679,750 (+13 per cent) for plexes. Year-to-date, half of all single-family homes sold for more than $485,000, a 26 per cent jump compared to the same period in 2020. As for condominiums and plexes, their year-to-date median price rose by 20 per cent and 13 per cent, respectively, to reach $354,000 and $676,000.”
The report concludes that the Montreal real estate market is “still showing significant overheating conditions, but the proportion of sales concluded above the asking price has weakened over the past four months.”
