“Housing prices have jumped again? That’s typical Vancouver,” we’ll say to each other (that’s a verbatim quote!).
So when we saw that the average price for two storey homes in Montreal had jumped more than any other city in Canada in the second quarter of 2011, we did a double take.
More like a triple or quadruple take!
Montreal has long been known for its affordable real estate, but according to a new RBC report, the city’s reputation for affordability may be starting to deteriorate. The price of a 1,500 square foot home rose 13.5 per cent to $377,200 year-over-year. That rate is higher than even Vancouver’s blazing hot market, where prices for the same type of house rose 9.7 per cent in the second quarter.
Is Montreal the new Vancouver? Banish the thought from your mind!
Vancouver is still the most expensive city in Canada to buy a home and its title isn’t in jeopardy — not by a long shot. It takes more than 95 per cent of household income to cover the basic of a two-storey home. In Toronto it takes 61 per cent of household income and in Montreal the number is 55 per cent.
The average cost of a two-storey home in Vancouver is $843,300 and the price of a detached bungalow is rising by almost 20 per cent year over year.
That’s typical Vancouver… But what about that big jump in Montreal? Not so typical and it will be interesting to see where this takes the housing market in the second largest city in Canada.