Residential property sales and prices in the Montreal area rose for every type of dwelling in July for the third consecutive month, according to data released by the Greater Montreal Real Estate Board on Friday.
“We’re in a seller’s market,” said Paul Cardinal, the manager of market analysis for the Quebec Federation of Real Estate Boards.
That’s the result of strong demand and diminishing supply, as the number of new and active listings declines.
Home sales across the region were up 16 per cent last month, when compared to July 2016, according to the GMREB.
That increase was highest on the island of Montreal, where the number of homes sold rose 21 per cent from July 2016.
“On the island, we’re seeing bidding wars back,” Cardinal said. “That’s the result of the hot market we have now.”
Across the region, sales of condominiums saw the biggest increase, rising 24 per cent year-over-year. Sales of single-family homes were up 13 per cent, while sales of plexes were up two per cent.
If these trends continue, Cardinal said, Montreal’s real estate market could be on track to have its second-busiest year ever, behind only 2007.
The increase in demand is leading to a decrease in supply, as properties spend less time on the market before being purchased.
The number of active listings was down 15 per cent, year-over-year, in July to 24,412.
The number of new listings was also down in July, dropping eight per cent from 2016, to 4,492.
Cardinal credited that, in part, to Montreal’s strong employment market. With more jobs in the region, fewer people are selling their homes to move elsewhere or facing the kind of financial pressures that would lead to a foreclosure.
But with a strong economy, high demand and decreasing supply, prices are continuing to rise.
The median price of single-family homes rose eight per cent year-over-year to $323,000, while the median price of condos was up two per cent to $256,000. The median selling price of plexes was up seven per cent to $489,000.
The Montreal region’s luxury market is also heating up, Cardinal said.
The number of single-family homes sold for over $1 million was up 20 per cent during the first seven months of 2017, when compared to the equivalent period in 2016, while the number of condos sold for over $500,000 rose 44 per cent during the same period.