2024 has brought new activity to Montreal’s real estate market. The buyers and sellers are rushing through the booming terrain. In this article, we analyze the latest trends and look for statistics that paint a broader picture of this dynamic market.
Market Overview
According to Quebec Real Estate Board, the months of supply for Single Family Homes stood at 5.41 months. On the other hand, for condos, it was 5.28 months in early 2024. These numbers have identified a balanced market at this time. It was neither a clear seller’s nor a buyer’s advantage. However, as the spring market conditions, these figures may shift. It can also reflect the seasonal fluctuations common in real estate.
Median Prices and Annual Growth
In Montreal, the median sale price for a Single-Family Home reached $737,500. It has reflected a staggering 17% year-over-year increase (Source 1). Meanwhile, the median sale price for condominiums stood at $450,000. And up 8.17% compared to the same period last year. These soaring prices can be attributed to the high-interest rates. These have made it more challenging for buyers to afford new homes. This is particularly in the single-family segment, leading to increased scarcity and higher prices.
Close to Asking Price Ratio
The Montreal real estate market landscape reveals that the average close-to-asking price ratio in January was 96% for Single Family Homes. And 97% is for Condominiums. This indicates that properties were selling for 3-4% below their list prices. This is a trend that is consistent with the buyer’s market conditions observed in recent years.
Days on Market
The average selling time for Single Family Homes in the Greater Montreal Area was 84 days. This was quite high from 72 days as compared to last year (Source 1). For condos, the average selling time was 71 days. This was an increase from 67 days the previous year. These extended selling times reflect the stagnant real estate market of 2022 and 2023. It emphasizes the need for patience among sellers.
Market Rebound and Interest Rates
The Bank of Canada’s decision is to hold the overnight rate at 5% for the fourth consecutive time in January 2024. This stable rate environment, cooling inflation, and easing excess demand could fuel a housing rebound in the coming months.
Sales and Inventory Surge
According to Bank of Canada, February 2024 witnessed a substantial 85% surge in sales activity compared to the previous month. This was outperforming the sales activity of February 2023 by 28.3%. Additionally, new listings were surged by a remarkable 32% year-over-year. It injected fresh inventory into the market.
Price Growth and Transactions
The average home selling price in Montreal’s housing market has been reached $579,721 in February 2024. It represents an 8.3% growth over the previous year. On the other hand, it also shows a 1.7% increase from the previous month (Source 2). Notably, this average price is 58% higher than the average price five years ago in February 2019. Meanwhile, 3,843 homes changed their owners. It signaled a 28.3% year-over-year increase in transactions.
Property Types and Comparisons
The 2024 interest rate forecast provides insights into the performance of different property types. The median price of a single-family home in Montreal was $550,000 in February 2024, increasing 6.8% year-over-year (Source 2). While condominiums saw a 3.9% year-over-year increase to a median price of $395,000. Plexes also commanded a median price of $739,500, up 4.2% from the previous year.
Vancouver, and Calgary, Montreal’s average home prices increased by 8.3% year-over-year as compared to other major cities like Toronto. It surpasses the growth rates observed in those markets. Furthermore, transactions in Montreal surged more compared to other cities. This was with a 28.3% year-over-year increase, outpacing Toronto, Vancouver, and Calgary.
The Montreal real estate market continues to evolve and it is driven by crucial factors such as rent fluctuations and demographics. The buyers and sellers need to be informed and adapt their strategies accordingly to Montreal real estate market. Therefore, a strong understanding of market dynamics can be a worthwhile endeavor.
