As the Canadian housing market continues to adjust to the effects of a new mortgage stress test, home price gains have been getting smaller and smaller. The aggregate composite MLS home price index was up just 1.5 per cent year-over-year in April, the smallest increase since 2009.
But one city seems to be bucking the trend, with a consecutive multi-month run of rising prices and sales.
Montreal home prices jumped 6.3 per cent year-over-year in April, led by a 7.3 per cent increase in the price of two-storey single family homes, according to the Canadian Real Estate Association. The median price of a condo jumped 2 per cent year-over-year to $245,350, while the median price of a single family home now sits at $317,000.
Housing Market News Alerts
Sign up for news alerts on the Toronto housing market
Sales are up too — a 10 per cent year-over-year increase, the 38th consecutive increase in sales for the city and the best month of April in eight years.
“Condo sales soared once again in April, with an 18 per cent increase in transactions,” reads a recent report form the Greater Montreal Real Estate Board. “In fact, this was the twelfth consecutive month of double-digit sales growth for this property category.”
According to Quebec Federation of Real Estate Boards market analysis manager Paul Cardinal, the province’s lower price point has allowed it to largely dodge the effects of the stress test.
“Because Quebec homes are at a lower price point, it doesn’t have as much of an impact on buyer in this area,” he told BuzzBuzzNews.
The market is also enjoying a boost from its strong employment market — 105,000 jobs have been create in the last two years. Combined with increased migration and consumer confidence at a 15-year high, the market is looking strong heading into the summer.
“The strength of the market is built on incredibly strong fundamentals,” said Cardinal.