Thanks to the Bank of Canada’s recent interest rate hike, the June 2023 Metropolitan Montreal Census (CMA) real estate market slowed compared to 2022, and properties for sale are slow to accumulate due to a lack of registrations.
However, prices are tending to stabilize as conditions are slightly less favorable for sellers, according to the latest data from the Association professional des courtiers immobiliers du Quebec (APCIQ) released on Thursday.
Residential property sales in the Montréal CMA area totaled 3,627 in June 2023, a decrease of 10% or 418 transactions compared to the same period last year.
“Spring began with bullish sentiment for buyers, but also for sellers, as the Bank of Canada decided to halt the rise in its policy rate after nine consecutive hikes,” noted Charles Brant, head of APCIQ Market Analysis services.
“While June usually translates into less sustained transaction activity, a further rise in interest rates and the fall in new listings mainly send a negative signal to market participants. As a result, they can postpone their purchase or sale,” he added.
Active listings increased in June, up 32% from a year ago. Thus, in June 2023, 15,806 listings were recorded in the Montréal CMA area, but the number of properties available remained stable compared to May (-19).
The drop in transaction activity also means average selling times are longer: 77 days for low-income properties (+33 days compared to 2022), 53 days for condos (+22) and 45 days for single-family homes (+20).
Average prices are still lower than they were in June 2022. The average price for Plexus was $726,500 in June, down 6%. With an average price of $390,000, condos were down 5% over the period. Single-family homes traded at an average price of $550,000, down 4% year-over-year, the press release said.