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Want to know what most Montreal buyers are complaining about these days? It’s the shortage of two-storey houses and bungalows on the market. Even condo buyers are impacted by this shortfall, as low inventory helps push prices of all property types up.
How bad is the problem? In the first three months of 2018, the median price of a two-storey house in Montreal rose to $492,751 — an 8.3% year-over-year increase. The worst hit area was, of course, the hot downtown communities, where home prices increased by 13.9% by March 2018. What else could you expect when the number of sales increased by 6% in March 2018 compared to March 2017, while the number of listings dropped by 16% in the same time period.
As expected, most Montreal buyers spend very little time griping. There’s business to be done and homes to be bought. Montreal is booming and with a strong local economy, most buyers and investors are far more concerned about finding the right home.
Still, there are questions. Is the city’s property market entering a bubble? Just last year, we were reporting how hot Montreal real estate market was. Has anything changed? Yes and no. After decades of slow growth, Montreal’s gains in property values are a welcome sight. And these gains have to be put into perspective. A gain of 14% on a $450,000 home is only a $63,000, while a 14% gain on a Vancouver home is closer to $270,000 (based on the average cost of a single-family home in the GVA which was just above $1.92-million).
Now, add to this mix a bunch of proactive developers. Montreal experienced a big jump in housing starts last year and when this product comes on the market, in the next few years, it will probably help to moderate any future price increases.
Of course, none of this helps buyers right now. We can. As in previous years, we ranked all the Greater Montreal neighbourhoods to find good, solid value communities. By examining downtown communities and commuter neighbourhoods we identify the areas poised to maintain their value and continue their pricing momentum. As always, the key to a smart real estate buy, particularly in a hotter market, is to find a neighbourhood that can withstand a potential correction and offers the possibility of future growth. That’s what our Top 25 neighbourhoods offer — a chance to buy a home that fits your lifestyle and your budget and can withstand whatever hiccups may come your way.