Real estate sales and price increases in Montreal and Quebec

Real estate: sales and price increases in Montreal and Quebec

According to data from the Quebec Professional Association of Real Estate Agents (APCIQ), residential real estate sales increased by 18% in the Greater Montreal area and 16% in the Quebec region in January 2024 compared to the same month last year.

A total of 2,077 homes were sold in Montreal's Census Metropolitan Area (CMA) in January 2024, compared to 1,766 transactions in January 2023.

“This is a level of transaction activity that is below the historical average recorded for this period of the year since Centris compiled the data in 2000,” APCIQ noted in a press release.

The average price for a single-family home was $535,000 in January, an increase of 7% compared to January 2023. The average price for a condo was $390,000 (+5%) and for an apartment building was $722,500 in January Dollar (+7%). .

Registrations valid for the month of January also recorded a significant increase (+16%) to 16,838 registrations in the Montreal CMA area.

“The good sales development at the beginning of the year is essentially due to the more positive prospects for interest rate developments. Since the end of 2023, economists have agreed that the upward cycle in interest rates is behind us and that the reverse process should begin in 2024,” explained Charles Brant, director of APCIQ’s market analysis service.

However, he reiterated that there are “many headwinds to a more open resumption of transaction activity,” particularly a sharp slowdown in economic activity and the associated uncertainties for new potential buyers.

In Quebec, demand for co-ownership is increasing

In Greater Quebec, residential sales increased by 16% (604 transactions) in January 2024 compared to the same month last year, while registrations recorded a less significant increase (+2%).

The average price for single-family homes increased 11%, from $325,000 in January 2023 to $360,000 in January 2024. For condos and multifamily homes, average prices increased 3% ($243,000) and 16% ($383,500), respectively. Dollar).

“The sharper price appreciation of single-family homes and the shortage of properties in this category continue to drive first-time buyers and potentially investors into the condominium and complex markets. “In addition, the Plex is proving to be an interesting alternative as prices still remain affordable for purchasing as a group and we are seeing an acceleration in rental growth in the area,” noted Mr. Brant.