Are house prices dropping in Montreal?

Wondering what the forecast predictions are for the real estate market in Montreal? It is all covered in this post. The number of home sales, the rising prices of real estate, and the exterior forces shifting prices are topics that are all covered! The Quebec Professional Association of Real Estate Brokers announced that in March of 2021 single-family home prices increased by roughly 32% and the median price for condos climbed up 21%. Additionally, in 2020 37% of Montreal single-family homes were sold at above the asking price. Prices are certainly not dropping as the market is hot. Now, due to the high demand and low supply sellers can expect to get above the asking price for their listings. But how long will this last? Simply put, it is hard to determine the future of the housing market due to the circumstances of the pandemic. However, statisticians expect home prices to continue elevating in the short-term.

What is the average home price in Montreal 2021?

The median price for a single-family detached home in the Montreal area in March of 2021 was $481,000 which is an increase of approximately 31.8% since March 2020. The median price for a condo in March of 2021 was $347,065 which is an increase of 20.9% since last March. Lastly, the median price for a plex in March of 2021 was $660,000 which is an increase of 8.1% since last March. 

The units sold for both condos and plex’s increased in March 2021 compared to March 2020. The units sold for condos increased by 25.9% in March of 2021 compared to last march and the units sold for plex’s increased by 33% since last March. This increase in sales is correlated to the increase in home prices. More people are looking for homes. This makes the demand rise and since supply is scarce the house prices increase and the sales increase.

This graph illustrates the forecast for the Montreal real estate market in the short-term. The graph suggests that the pattern of prices for Montreal real estate will slightly fluctuate but will remain in the same range. With the peak of the housing prices being in the summer months of 2022. However, there is a lot of uncertainty for the forecast of the 2021 and 2022 housing market due to the ever-changing circumstances of the pandemic such as the rise in unemployment.

*Graphs retrieved from: https://www.mortgagesandbox.com/news/metro-montreal-home-price-forecast-jan-2021

Is the Market Still Affordable for Buyers?

The Quebec Government is closely watching the housing market in the Montreal area. The reason for such is the increase in home prices caused by low interest rates, pandemic related criteria, and additional factors as well. Although prices have gone up many are comforted by the fact that Montreal is still regarded as an affordable city compared to Toronto. The Canadian Real Estate Association states that in the month of April 2021 the benchmark for home prices in Montreal is roughly $483,200 whereas in Toronto this figure is roughly $1,000,000. While it is important to remain vigilant, buyers really don’t have much to worry about.

With the ease of obtaining a large mortgage buyers can buy a larger home with their larger budget. Moreover, buyers can benefit from the decrease in interest rates that has occurred over the last year.

Is Montreal Real Estate Booming? 

In short, the answer is yes. Although the future is uncertain due to the circumstances of the pandemic, the figures in the graph illustrate a boom in the market. Due to the boom in the market, many retirees are beginning to sell their homes earlier than anticipated. The uncertainty of the market due to the unforeseeable circumstances are prompting many who have invested in properties to begin selling. With a low supply and a high demand for houses, it's a seller’s market! Meaning, that if you own property take advantage of the current market.

Moreover, if you’re a buyer looking for a home you can also benefit as of right now. Low interest rates and easily attainable large mortgages can make it easier to purchase your dream home. With the good borrowing conditions, it is easier for buyers to buy a more expensive home. These low interest rates are subject to change due to inflation, so it is critical for buyers to act fast.