Real Estate News

Sales and Listings Rebound in the Montreal CMA in May

 

L’Île-des-Sœurs, June 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, 3,286 residential sales transactions were concluded in May 2020, a 41 per cent decrease compared to May of last year. Although this was the second consecutive month in which sales dropped considerably due to the pandemic, the resumption of real estate brokers’ activities on May 11 in near-normal conditions has clearly had an impact on the gradual recovery of market activity. Real estate brokers are required to follow strict sanitary measures in order to support their clients throughout the real estate transaction, while collaborating responsibly.

Sales by geographic area

  • Compared to April, all six main areas of the Montreal CMA registered a smaller year-over-year drop in sales, thanks to the gradual reopening of several economic sectors.
  • Several peripheral areas continued to show resilience in the face of measures taken to counter the spread of the virus.
  • This was the case in Saint-Jean-sur-Richelieu (-16 per cent), which continues to be the area of the CMA least affected by the pandemic.
  • The North Shore (-27 per cent) and, to a lesser extent, Vaudreuil-Soulanges (-36 per cent) and the South Shore (-39 per cent) also registered a recovery in sales activity, although still far behind last year’s level.
  • Laval and the Island of Montreal emerged in May as the areas most affected by the health crisis. Despite the progressive restarting of the economy, the level of sales was half that of last year, with respective decreases of 49 per cent and 51 per cent. Remember, however, that we are comparing May’s numbers to those of May 2019, when the spring’s real estate market was exceptionally strong.

 Sales by property category

  • Across the CMA, the difference in the number of transactions compared to May 2019 was significantly smaller for single-family homes (-36 per cent) than for condominiums (-44 per cent) and plexes (‑54 per cent), with 1,926, 1,107 and 250 transactions, respectively.

Prices

  • The median price of single-family homes across the CMA registered a strong increase of 9 per cent compared to May of last year, reaching $370,000.
  • The median price of plexes (2 to 5 dwellings) and condominiums posted an equally impressive increase of 8 per cent to reach $597,750 and $280,000, respectively.

Number of properties for sale

In May, there were 13,650 active residential listings in the Montreal CMA, a 31 per cent drop compared to May of last year. This decrease, although significant, is much smaller than the decrease that was registered in April, the month most heavily affected by the pandemic. The number of new listings fell by 21 per cent in May, a significantly smaller drop. This means that the delay in listing properties is diminishing considerably.

“The gradual reopening of the economy and the full resumption of real estate brokerage activities and physical visits since May 11 have translated into a significant recovery in sales and listings in the Montreal CMA,” said Julie Saucier, president and chief executive officer of the QPAREB. “The North Shore and the main sectors of the southern periphery of the Montreal CMA have seen a significant recovery in transactions, while Montreal and Laval seem to be suffering from the more gradual deconfinement. Nevertheless, prices continue to increase steadily in all areas, reflecting market conditions that are still very favourable to sellers,” she added.

For May 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.