A new report from Royal LePage reveals that a "chronically low" housing supply in Montreal is contributing to an overall increase in prices during the first quarter of 2021 and will contribute to even more increases in the near future.
"Residential demand has continued to grow in Greater Montreal and the number of single-family homes for sale on the market today is approximately half of the inventory we had before the pandemic," said Dominic St-Pierre, vice-president and general manager of Royal LePage Quebec, in the press release.
The report goes on to explain that in Montreal itself, the "aggregate price of a home increased 11.1 per cent" this year. Two-storey homes and bungalow prices have also increased by 15.7% and 12.3%, respectively.
The price of condos, meanwhile, has also increased by 7.8% for an average price of $455,433. Royal LePage said that increases of up to 16% in the Greater Montreal Area should be expected by the end of the year.
"Although we believe that the price increase will gradually subside as public health measures are relaxed, buyers who waited, especially first-time buyers, could be priced out of the market, as we do not foresee price softening in the medium term," added St-Pierre.