Montreal market powers ahead as home sales surge

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Market,Montreal,Toronto

What’s happening has some familiar causes: the combination in recent years of faster immigration and population growth and inaction on increasing housing supplies to meet demand

Recent real estate data has put Montreal in the pole position for most impressive spring market in the country, and underlying data suggests the seller’s market could persist for some time.

Sales volume in the Montreal region was up 14 per cent year over year in March and dollar volume hit $2.6-billion, up 23 per cent from 2023. Average sale price was also up 6.4 per cent from $586,133 to $623,820. . Charlies Brant, market analyst for the Quebec Professional Association of Real Estate Brokers, points out his province has been less affected than others by higher rates.

Still, the first quarter outperformed Mr. Brant’s expectations, making it the first quarter since 2021 to hit a double-digit sales increase. The position of being one of the fastest-moving big markets is a novel one for Montreal, and the pattern is repeating in smaller markets across the province with Quebec City also showing very strong transaction and price growth.

“If homebuyers start jumping back into the market and push prices up, this would exert upward pressure on inflation via higher shelter costs but also via stronger economic activity and less excess supply,” said Farah Omran, a senior economist with Scotiabank. “Home sales have spillover effects on other parts of the economy, so an uptick in sales activity not only increases the residential investment component ofbut also spending on housing-related things like furniture.

 

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