(Montreal) The euphoria in the greater Montreal housing market appears to have “peaked” as data from June indicated the market is stabilizing.
Posted at 3:41pm
The number of housing transactions in June fell 11% year-on-year to 4,078 transactions, according to data released Wednesday by the Professional Association of Real Estate Brokers of Quebec (APCIQ). The number is below the average of 4,333 transactions recorded since 2017.
The median price for single-family homes also weakened in June. It reached $570,000. This is up 12% from June 2021, but down $6,000 from May 2022.
“Although market conditions remain very tight to the advantage of sellers, over the next few months we will finally see a downtrend in overbidding and a easing of the sustained price rise compared to 2021,” predicts APCIQ’s director of market analysis services, Charles Brant, in a press release .
“Overall, price stabilization has taken shape since last May, announcing that the market top has been reached in Montreal, especially in a context where [satisfaire aux critères d’admissibilité] It’s proving increasingly difficult for households to get a mortgage,” he adds.
Homes for sale in the Montreal area increased for the sixth straight month. Registrations totaled 12,370, a 15% increase from June 2021.
Decline in the number of transactions
The island of Montreal saw the biggest drop in transactions, down 20%. The South Shore and Laval sectors each suffered a 4% decline in the number of transactions.
As recently as June, transactions on the north coast were down 7%, while transactions in Saint-Jean-sur-Richelieu were down 13%. The Vaudreuil-Soulanges sector remained stable.
By apartment type, plexes saw the largest drop in the number of transactions at 25%. The decline was 9% for single-family homes and 10% for condominiums.
The average price on the Plex market increased by 9% to $770,000 in a year. Condominium price growth was also 12%.