Montréal’s housing market had a banner year in 2017 and, according to a local real estate board, 2018 is set to be even better.
“The Montréal area real estate market in 2017 performed well beyond what we had anticipated,” writes Greater Montréal Real Estate Board board of directors president Mathieu Cousineau, in a recent statement. “In fact, the increase in sales was so remarkable that the year 2017 had the second highest number of transactions ever in the Montréal area.”
That number was 44,448, the highest number of sales on record since 2007. Every property type saw a bump in sales, with condos jumping a whopping 17 per cent, while multiplexes and single-family homes rose by 6 per cent and 3 per cent, respectively.
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“The strength of the market is built on incredibly strong fundamentals,” Quebec Federation of Real Estate Boards market analysis department manager Paul Cardinal tells BuzzBuzzNews.
Cardinal points to Montréal’s employment market as a major factor in the sales boom, after the creation of a record 105,000 jobs in the last two years. Add in a low unemployment rate, increased migration numbers and consumer confidence that sits at a 15-year high, and you have a recipe for a red-hot market.
Prices also shot up in 2017, with the median price of a family home rising 7 per cent to $310,000, the largest increase in seven years. Meanwhile, the median price of a condo rose 3 per cent to $247,000.
According to Cardinal, these numbers are just the beginning of what should prove to be one of the strongest years for the Montréal housing market in the past decade.
“We absolutely expect this trend to continue into 2018,” says Cardinal. “Right now we’re forecasting a 5 per cent increase in sales and a 5 per cent increase in the median price of family homes.”
Adding to the rosy forecast, Montréal will likely bypass any cooling effects from new mortgage rules that came into effect on January 1.
“Because Montréal homes are at a lower price point, it won’t have as much of an impact on buyers in this area,” says Cardinal.