Meanwhile, Montreal home prices are STILL going up. 🏠🏢💰📈
That chill in the air isn't an early sign of the approaching autumn, that's just the first hint of a cooling Montreal real estate market — sort of, maybe (*fingers crossed*). Royal LePage has released its quarterly House Price Survey and forecast, projecting more price increases but noting a "slowdown" in sales. The company also offered anecdotal evidence that Bill 96 has become a factor in some buyers' plans — at least, unsurprisingly, in the old anglo citadel that is the Montreal West Island.
Bank of Canada interest rate hikes, local Royal LePage broker Marc Lefrançois said in a release, have led buyers to "seriously reassess their financial capacity" and "reduced their enthusiasm and slowed down demand for properties in June."
He, therefore, predicts "healthier price appreciation" for the rest of 2022.
But the price projections are still staggering. Royal LePage forecasts Montreal-area real estate prices will be 12.5% higher in the fourth quarter of 2022 than they were in the fourth quarter of 2021. In Toronto and Vancouver, the projected increases are just 3% and 5%, respectively.
But the 12.5% figure is a slight reduction from the 13.9% Q2 year-over-year price increase. So, encouraging?
Royal LePage says the median price of a Montreal-area single-family home reached $660,400 in Q2. The median condo price reached $452,500.
As for the effects of Bill 96 on the market, Beaconsfield Royal LePage broker Sean Broady says the legislation, a sweeping reform of the Charter of the French Language, is compounding at least a few buyers' weariness amid interest rate increases.
"The adoption of Bill 96 raised alarm bells with many West Islanders who moved here from outside the province for work or don't have strong French skills, and are currently considering leaving," Broady said in the release.
The broker said he has "listed two properties for sale in the West Island in recent weeks for owners who are looking to leave the province for this reason."