Montreal home values rise, but sales slip

Peter Rawski For Sale

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.

© Copyright (c) The Montreal Gazette

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