Real Estate News

Significant Price Increases in February on Montreal’s Residential Real Estate Market

L’Île-des-Sœurs, March 5, 2020 – The Quebec Professional Association of Real Estate Brokers (QPAREB) has just released its most recent residential real estate market statistics for the Montreal Census Metropolitan Area (CMA), based on the real estate brokers’ Centris provincial database.

In total, 5,338 residential sales were concluded in February 2020, a 23 per cent increase compared to February of last year. This was the 60th consecutive month of sales growth.

Sales by geographic area

  • All six main areas of the Montreal CMA registered an increase in transactions in February.
  • Saint-Jean-sur-Richelieu, the South Shore, Laval and the North Shore stood out with respective sales increases of 33 per cent, 30 per cent, 28 per cent and 23 per cent.
  • Sales in Vaudreuil-Soulanges and on the Island of Montreal registered a more modest level of activity, as transactions rose by 18 per cent and 17 per cent, respectively.

Sales by property category

  •  Across the CMA, the number of single-family home transactions rose by 23 per cent (2,958 sales) in February. The number of condominium transactions also increased by 23 per cent (1,942 sales), while plex transactions jumped by 31 per cent (434 sales).

Prices

  • The median price of single-family homes across the CMA continued to increase sharply, rising by 13 per cent to reach $360,000, while the median price of condominiums also increased significantly, by 10 per cent, to reach $275,000.
  • The median price of plexes (two to five dwellings) registered a 13 per cent increase compared to February of last year, settling at $597,750.
  • For all property categories combined, median prices on the Island of Montreal, Vaudreuil-Soulanges, the South Shore and the North Shore registered strong increases of 16 per cent, 16 per cent, 13 per cent and 9 per cent, respectively.
  • Price growth, while still strong, was slightly lower in the areas of Laval and Saint-Jean-sur-Richelieu (+7 per cent, +6 per cent).

“A new record was set this year for the number of sales transactions during a month of February, surpassing the previous peak that dates back to 2002,” said Julie Saucier, president and chief executive officer of the QPAREB. “Active listings continue to decline, and this further tightening of the market in favour of sellers is leading to double-digit price growth in the tightest sectors,” she added.

Number of properties for sale

In February, there were 20,619 active residential listings in the Montreal CMA, a 7 per cent drop compared to February of last year.

For February 2020 and year-to-date statistics charts, click here.

Bank of Canada cuts rates by half a percentage point to 1.25% amid coronavirus concerns

The Bank of Canada cut its trend-setting interest rate by half a percentage point to 1.25 per cent down from 1.75 per cent on Wednesday in an effort to soften the economic impact of the COVID-19 outbreak.

The decision comes after the U.S. Federal Reserve implemented a similar cut on Tuesday, acting before its next scheduled policy meeting on March 17-18.


 

“While Canada’s economy has been operating close to potential with inflation on target, the COVID-19 virus is a material negative shock to the Canadian and global outlooks, and monetary and fiscal authorities are responding,” the central bank said in a statement.

While the traders and analysts had widely anticipated that Canada’s central bank would follow the U.S. lead, it’s unclear to what extent the rate cut will shore up sentiment among investors, markets and consumers.

The Fed’s surprise cut failed to trigger an immediate rebound in the stock market, with some analysts speculating that the emergency move might have further spooked investors.