MONTREAL – Sales of Montreal Island homes dropped eight per cent last month, year over year, even as property values continued to rise, countering fears of softening prices from overbuilding in the condo sector.
Buyers had a greater choice of homes, as active listings piled up, rising 18 per cent, according to data published Tuesday by the Greater Montreal Real Estate Board.
Despite a softening in the housing market in other Canadian cities, median prices of a single family home on Montreal Island rose eight per cent last month to $385,000, year over year, as condo prices climbed four per cent to $278,821.
In the Greater Montreal Area, however, the median price of a single family home remained flat at $275,000, and rose just one per cent to $233,000 for a condo. In a reversal of the hot condo market of 2011, “sales of single family homes posted a sixth consecutive monthly increase, outperforming condos for five straight months,” wrote Diane Ménard, vice president of the Montreal board’s board of directors.
Sales of single family homes were up six per cent, with condos rising just one per cent last month, year over year. Tougher new rules for insured mortgages that went into effect in July did not appear to have an effect on sales.
On the South Shore, the median price of a single family home dropped two per cent in July to $260,000, even as sales rose nine per cent. The dip was caused not by a general drop in property values but because of greater demand for lower-priced homes in areas like Châteauguay, where sales rose 33 per cent, year over year, the board said.
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