The price of a home in the greater Montreal area fell 2.4% to $571,800 in the second quarter, but the rise in the Bank of Canada’s interest rate didn’t slow the housing market from overheating.
Despite this decline, the total price of a property in the same region rose 3.7% between the first two quarters of the year in a generally declining real estate market.
In the prior quarter, the median price of a single-family home fell 2.5% from the same period last year to $644,100, while the median price of a condo was $461,700, up 2%.
The Bank of Canada’s rate hike will dampen enthusiasm from some potential buyers who have yet to wait, said Dominic St-Pierre, Royal LePage’s vice president and general manager for the Quebec region.
“This announcement should temporarily dampen the enthusiasm of a mass of potential buyers as we see another sharp rise in house prices after a brief period of correction,” analyzed Mr. St-Pierre.
Additionally, Royal LePage expects the fourth quarter of 2023 to increase 8% (8.5% Pan-Canadian) compared to the same period last year to $587,844.
“The current market is in a vicious cycle similar to that experienced during the pandemic, exacerbating product shortages in the market,” noted Mr. St-Pierre, citing the imbalance between supply and demand in the market.