Montreal’s residential market is on the upswing as a result of slight decreases in house prices and low interest rates, according to real estate analysis reports.
Detached bungalows saw a slight decrease in average price of 0.2 per cent, year-over-year to $295,786, while standard two-storey houses saw a decrease of 1.5 per cent to $398,214 in the second quarter in the Greater Montreal Area (GMA).
With prices decreasing, sales have increased in the second quarter. “Sellers have adapted to the reality of the market and have lowered their expectations for prices,” Dominic St-Pierre, director of Royal LePage for the Quebec Region said. “The market has become more favourable for buyers and has seen a boost in sales volumes, supported by more competitive prices.”
The West Island
House prices in the West Island are trending upward, house study's indicate.
The average price of a detached bungalow in Beaconsfield in the second quarter was $335,000, $9,000 more year-over-year. Detached homes in Dorval, too, experienced a price growth with 1.1 per cent (average of $312,000), year-over-year.
The average price of the said home is more than the Montreal average of $295,786.
House prices in Pierrefonds dropped 1.3 and 1.2 per cent for detached bungalows and the standard two-storey home, respectively.
The standard condominium saw a 2.1 per cent price increase – the most significant increase in the last 10 years.
The average price of a condo in the GMA was $244,556, up from $239,611.
“The property market in Montreal continues to be favourable for buyers, and we remain optimistic that the market will stabilize further in the coming months,” noted St-Pierre.
While homes in Montreal are experiencing a generally-small decrease in prices, the average price of a home in Canada rose between 3.9 per cent and 7.5 per cent year-over-year in the second quarter for detached bungalows and two storey-homes.
The cities enjoying the biggest price increases were Toronto and Hamilton.
In the second quarter of 2015, Toronto saw a 12.9 per cent year-over-year average price increase in detached bungalows and an 11.6 per cent increase in the price of standard two-storey homes. During the same period Hamilton saw 10.9 per cent and 13.0 per cent increases in the same two categories.
Forecasting Montreal market
The Canada Mortgage and Housing Corporation (CMHC) is forecasting price growth as a result of high demand in Montreal for 2015 and 2016, according to its second quarter Quebec highlights report.
Prices of resale homes will post growth ranging from minus 2.2 per cent to 5.3 per cent in 2015, and from minus 3.7 per cent to 8.4 per cent in 2016. The average price of a home recorded by Centris’ real estate listings will range from $260,000 to $280,000 in 2015 and from $262,000 to $295,000 in 2016, according to the CMHC report.
Originally published by The West Island Chronicle