Montreal Homebuyers Will Now Pay $35,000 More Than Last Year As Market Continues To Soar
Montreal East now has the highest price increase rate in the country!
- If you're looking for real estate in Montreal, you're going to want to see these numbers.
- As the Montreal market continues to tighten, prices are now increasing at a faster rate than any other market in Canada.
- View the House Price Survey data below.
According to a new survey done by Royal LePage looking at Real Estate in Montreal, people who are looking to buy a home in Montreal's city centre can "expect to pay $35,000 more than last year," indicating that the Montreal housing market is still a hot place to be selling and an increasingly expensive place to be buying.
The House Price Survey collects data from each quarter and considers the increase in home prices for different types of homes.
The new survey indicates that Montreal's housing market has now surpassed both Vancouver and Toronto in terms of aggregate price rate increases.
The price summary survey is also done across 63 Canadian housing markets, where homes saw an aggregate price increase of about 1.4% making the average home in Canada about $630,335.
Even with Montreals booming housing market right now, that aggregate Canadian home price is about double the aggregate price of a home in Montreal.
Dominic St-Pierre, Director and VP of Royal Lepage for the Quebec Region indicated that there was anticipation of a slow-down for the Montreal market, but instead, conditions are "continuing to tighten," with the market continuing to grow.
"Buyers who have postponed entering the market are now faced with a $35,000 year-over-year increase in Montreal Centre and $23,000 increase in Greater Montreal."
Take a look at the data below.
The continued expansion of and activity within the Montreal market has resulted in both growth in sales and growth in price - meaning Montreal has yet again surpassed Toronto and Vancouver when it comes to the aggregate year-over-year appreciation.
This aggregate year-over-year price comparison is really just looking at homes in a certain area and averaging out the price point of a certain type of home in that area. Then they compare them, year-over-year, to see the percentage in price increase.
The aggregate price appreciation rate for the Greater Montreal region was 5.9% in the third quarter of 2019 - the Montreal Centre's rate was 7.0%.
While these percentages may seem small, they have a huge impact on big numbers, like the price of a home.
The survey also indicates that the appreciation rate for condos in Laval is, "for the first time, higher in Laval than anywhere else in the region," likely driven by affordability relative to Montreal's city centre.
Montreal East has been seeing much of the same activity, as it saw the "highest appreciate rate of the aggregate this quarter among Canada's largest urban centres."
New construction builds saw a 20.5% increase, but increased new construction is mandatory to rebalancing supply and demand in Montreal.
St-Pierre's final words on the matter: "Strong demand will continue to actively stimulate the Montreal market; the lack of inventory will continue to be the core element of price appreciation."
*Data in the tables may not correspond to numbers reported for the same period due to later updates.