Real eState

‘Montreal is sexy’ and its housing market is expected to break records in 2020

Published

5 years ago

January 23, 2020

Quebec as a whole is outperforming the rest of Canada. Yet housing affordability has deteriorated and is now approaching “critical levels,” an economist warns.

Full employment, rising disposable income, low interest rates and government incentives for home ownership are all contributing to the expected growth in real-estate demand.

John Mahoney / Montreal Gazette file photo

Get ready for another strong year in Montreal real estate.

Residential property sales in the greater Montreal area are set to climb six per cent this year to a record 54,600 units, according to a forecast released Thursday by the Quebec Professional Association of Real Estate Brokers. The group, which represents more than 12,700 brokers and agencies, is also forecasting six-per-cent increases in condominium and single-family home prices for 2020.

“Montreal has entered a phase of exuberance,” Charles Brant, the association’s head of market research, said Thursday at a presentation attended by property brokers and reporters. “There is a clear lack of supply.”

A record 51,329 properties were sold in greater Montreal last year, a 10-per-cent jump from 2018, the association said, citing data from the Centris system. This marked the fifth consecutive annual increase of more than five per cent. The transactions had a combined value of $20.3 billion, 15 per cent more than in 2018.

Full employment, rising disposable income, low interest rates, positive migratory flows and government incentives for home ownership are all contributing to the expected growth in real-estate demand. Still, an anticipated slowdown in economic growth — combined with labour shortages — could negatively impact job creation and prevent Quebec’s economy from reaching its full potential, the association said.

Activity last year was particularly sustained in some outlying municipalities, as evidenced by increases of 21 per cent in St-Jean-sur-Richelieu, 15 per cent on the South Shore and 14 per cent on the North Shore. Sales in Laval jumped 13 per cent, outstripping the four-per-cent gain posted by the island of Montreal.

All major property types recorded price increases. Plexes, defined as properties of two to five dwellings, rose seven per cent to a median price of $550,000. Single-family home prices advanced six per cent, to $340,000, with condominium prices climbing five per cent to $267,900.

Housing affordability in Montreal has deteriorated and is now approaching “critical levels,” Hélène Bégin, economist at Mouvement Desjardins, told attendees. The city’s residential market is showing signs of overheating, and “a risk of overvaluation exists, though we’re not there yet,” Brant added.

Bidding wars are now an inescapable reality, especially in the central neighbourhoods. Thirty-nine percent of single-family homes sold in Rosemont last year elicited bidding wars, while the proportion in Villeray was 36 per cent, Brant said, citing QPAREB data.

Non-residents now account for about 15 per cent of all residential transactions in the downtown core, Brant said. The figure reflects Montreal’s newfound popularity among foreign investors, according to Patrice Groleau, who owns the McGill Immobilier and Engel & Volkers real-estate agencies.

“There’s never been this much money in Montreal,” Groleau said at the event. “Montreal is sexy. People from all over the world want to come and live here.”

Anecdotally, Groleau said one of his brokers recently took on his first $1-million property mandate in Hochelaga-Maisonneuve, which has traditionally been one of Montreal’s poorest districts.

Quebec as a whole is outperforming the rest of Canada. Residential property sales in the province rose 12 per cent last year, with median prices for single-family homes climbing four per cent, compared with increases of six per cent and 2.5 per cent respectively for all of Canada.

More than 96,500 residential properties changed hands in Quebec last year, a new record, and QPAREB predicts the 2020 total will top the 100,000 mark for the first time as median prices for single-family homes advance five per cent.

Active listings across the province fell 12 per cent in 2019, settling at the lowest level since 2010. It took an average of 97 days to sell a home in the province, the smallest figure since 2012. Montreal-area properties sold even faster, averaging 71 days on the market, amid a 19-per-cent plunge in active listings.

Those numbers firmly put Montreal — and all of Quebec — into “seller’s market” territory. A region or area is deemed to be a seller’s market when fewer than eight months are required to sell the housing inventory.

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Real eState

Greater Toronto home sales jump in October after Bank of Canada rate cuts: board

Published

4 days ago

November 6, 2024

Anne Joseph

TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.

The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.

The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.

“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”

The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.

New listings last month totalled 15,328, up 4.3 per cent from a year earlier.

In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.

The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.

“I thought they’d be up for sure, but not necessarily that much,” said Forbes.

“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”

He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.

“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.

“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”

All property types saw more sales in October compared with a year ago throughout the GTA.

Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.

“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”

This report by The Canadian Press was first published Nov. 6, 2024.

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Real eState

Homelessness: Tiny home village to open next week in Halifax suburb

Published

2 weeks ago

October 24, 2024

Anne Joseph

HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

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Real eState

Here are some facts about British Columbia’s housing market

Published

3 weeks ago

October 17, 2024

Anne Joseph

Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

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