Montreal | Home sales fell 17% in April

Home sales in Montreal fell 17% in April from a year earlier, making it the least active April the market has seen since 2017, Wednesday’s report said. Professional Association of Quebec Real Estate Brokers (APCIQ) .

Posted on May 4th

According to the group, a total of 5,124 properties changed hands in the Montreal area last month, compared to 6,164 in April 2021.

According to APCIQ’s director of market analysis services, Charles Brant, the return to the most moderate level of activity in five years after difficult months “points to a significant slowdown.”

The northern sectors of the metropolitan area saw larger annual declines. Sales fell 21% in Laval and 20% on the north coast, while on the island of Montreal they fell 17%. However, the slowdown was less pronounced in the southern sectors, with sales down 14% in Vaudreuil-Soulanges and South Shore, while down 10% in Saint-Jean-sur-Richelieu.

The slowdown is particularly evident in the single-family housing category, where you have to go back to 2014 to find comparable data for April. However, 2014 was one of the least active years of the last 20 years.

“If this situation is largely explained by a lack of single-family homes available in the market, we must face the fact that price levels are crowding out a large proportion of potential buyers for this property category,” observed Mr. Bran.

“The most determined buyers, undeterred by market conditions, are making massive grabs for lower-priced condos faster than ever,” he added, noting that the prospect of higher interest rates may also persuade some buyers to act more quickly .

All apartment categories recorded a decline in activity. Sales of two- to five-unit buildings fell 19%, single-family homes fell 17%, and condos fell 16%.

Despite the decline in sales, APCIQ noted that average single-family home prices rose 16% year over year to $580,000. This is even higher than in March 2022 when prices reached $566,000. The average condo price is up 15% year over year to $410,000.

The median price of plexes rose 14% to $780,000.

A market that is still favorable for sellers

New listings for the month of April fell to 6,300, down 10% from 7,027 new listings in April last year. However, the number of active listings increased for the fourth straight month, reaching 10,454 in the region. According to APCIQ, such a series of increases has not been observed since 2013.

“Despite the recent increase in supply, it remains at historically low levels, so despite the fall in demand in recent months, market conditions in Montreal still point to a broadly benign seller’s market,” economist Daren King estimates for the Financière Banque Nationale .

“Although moderation in the Montreal housing market has been underway for a number of months, the latest data for the Vancouver and Toronto markets suggests that it should continue in the coming months, particularly on the back of sharp price increases that are driving affordability significantly deteriorated since the outbreak of the pandemic and the recent hike in mortgage rates that is beginning to make itself felt. »

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