The rise in interest rates affected the real estate market, which continues to slow steadily with a significant 20% drop in the number of transactions in August compared to the same period in 2021.
Montreal’s Census Metropolitan Area (CMA) saw 2,681 residential transactions, compared to 3,347 sales a year earlier, while the number of properties for sale rose 37% to 13,715, according to data from the Professional Association of Quebec real estate agents.
The decline in sales was 34% in Saint-Jean-sur-Richelieu and 31% on the island of Montreal, while the North Coast and South Coast experienced mixed fortunes, with falls of 10% and 3%, respectively.
The trend observed in July is confirmed again a month later, with a sharper slowdown in Plex sales, which fell from 385 to 248, while condos and single-family homes fell 22% and 14%, respectively.
APCIQ notes that the median single-family home price rose 5% year-on-year to $525,000, while the price of condos and plexes hit $385,000 and $697,000, respectively, up 3%.
“The magnitude of the rise in mortgage rates is thus more clearly reflected as transaction activity continues to slow and the inventory of properties for sale increases,” said Charles Brant, director of market research at APCIQ.
“The process of rebalancing the market is therefore underway, albeit much more gradual than in other Canadian metropolitan areas, which is manifested in a decline in the ratio of sales to new offers and a rapid decline in the proportion of completed property sales following a process of superiority,” analyzes Mr. Brant.