Real estate prices in the greater Montreal area have risen more than expected

According to a study by realtor Royal LePage, the average price of real estate in the greater Montreal area reached $571,400 in the first quarter of 2022, an increase of 18.5% compared to the same period last year.

During the same period, the median price of a freestanding single family home rose 19.8% year over year to $636,200, while that of a condo rose 17.7% to $446,700.

According to the study published on Tuesday, this is “more robust than expected growth in house prices”.

Royal LePage, which had to raise its forecast, forecasts that the price of real estate in the greater Montreal area will reach $599,200 in the fourth quarter of 2022, up 12.5% ​​from the end of 2021.

Missing Inventory

“Buyers who haven’t gotten their hands on a property in the past two years continue to crave ownership, and in that time consumer behavior in the property buying process has changed. […]. Today, sellers are trying to buy their next home before their current property comes on the market, compounding inventory shortages and feeding a vicious cycle that will take time to resolve,” commented Dominic St-Pierre, vice president and general manager of Royal LePage , Quebec Region.

Additionally, housing starts in Montreal’s Census Metropolitan Area (CMA) fell 44% year-on-year in January and February 2022.

The number of active listings in the greater Montreal area also declined 13 percent in January and February, for all property types combined.

The study also shows that real estate excitement on the outskirts of central Montreal continued in full swing in the first quarter of 2022. The median price of a single-family home on the South Shore, North Shore and Laval rose 23.6%, 23.5% and 23.3%, respectively, year over year.

“Teleworking has transformed the real estate market in the last two years,” recalls Mr. St-Pierre. This urban sprawl has particularly benefited the province’s suburbs and resort markets, as buyers are willing to find properties much further afield than before in order to achieve the quality of life they seek.

He estimates that if immigration returns to a more sustainable pace, “real estate demand for central Montreal neighborhoods will pick up again.”

In terms of revenue, single-family home transactions in the greater Montreal area declined 18.9% in the first quarter of 2022 compared to the first quarter of 2021, while condominium sales fell 14.7% over the period.

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