Asal Jami

Asal Jami

Residential Real Estate Broker

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Phone: 514.846.0909

Email: asaljami@royallepage.ca

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Real Estate News

An Exceptionally Active Month of August on Montreal's Real Estate Market

 

 
photo-release

 

Montreal area real estate market

 

 
Montreal area real estate market

 

Residential sales – august 2019

 

 

Association professionnelle des courtiers immobiliers du Québec

 

 

 

L’ÎLE-DES-SŒURS, Quebec, Sept. 06, 2019 (GLOBE NEWSWIRE) -- 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, 3,527 residential sales were concluded in August 2019, a 10 per cent increase compared to August of last year and the best result for a month of August since data started being collected (2000).

"The exceptional strength of Montreal's real estate market in August is consistent with the robust sales results that we've been seeing since the start of the year," said Nathalie Bégin, president of the QPAREB board of directors. "Several outlying areas of the Montreal CMA are leading the way in terms of sales, and they're also registering substantial increases in the median price of residential properties. A rebalancing is taking place in relation to the considerable increases that have been observed on the Island of Montreal since 2018," she added.

Sales by geographic area

Geographically, five of the six main areas of the Montreal CMA registered a significant increase in sales in August, including the North Shore (+17 per cent), the South Shore (+16 per cent) and Laval (+12 per cent). However, the Saint-Jean-sur-Richelieu area outperformed all of these sectors with a 20 per cent increase in sales compared to August of last year.

Sales rose by a respectable 5 per cent on the Island of Montreal but fell slightly in Vaudreuil-Soulanges (-1 per cent).

Sales by property category

Across the CMA, condominiums surpassed the other property categories and registered the largest increase in transactions (1,374 sales) in August, with a notable jump of 23 per cent.

As for plexes (2 to 5 dwellings), sales rose significantly by 18 per cent (371 transactions).

Sales of single-family homes remained stable (+1 per cent) compared to August of last year, with 1,779 transactions.

Prices

Property prices across the CMA rose steadily for all three property categories in August.

The median price of single-family homes increased by 4 per cent year-over-year to reach $345,000, while that of plexes rose by 3 per cent to reach $532,500.

The increase in the median price of condominiums was more significant, rising by 7 per cent to reach $279,000.

Number of properties for sale

The number of properties for sale continued to fall in August, as there were 16,390 active residential listings on the Centris system, a 21 per cent drop compared to one year earlier. The number of active listings in the Montreal CMA has not reached this low a level since August 2004.

Bank of Canada maintains overnight rate target at 1 ¾ percent

 

The Bank of Canada today maintained its target for the overnight rate at 1 ¾ percent. The Bank Rate is correspondingly 2 percent and the deposit rate is 1 ½ percent.

As the US-China trade conflict has escalated, world trade has contracted and business investment has weakened. This is weighing more heavily on global economic momentum than the Bank had projected in its July Monetary Policy Report (MPR). Meanwhile, growth in the United States has moderated but remains solid, supported by consumer and government spending. Commodity prices have drifted down as concerns about global growth prospects have increased. These concerns, combined with policy responses by some central banks, have pushed bond yields to historic lows and inverted yield curves in a number of economies, including Canada.

In Canada, growth in the second quarter was strong and exceeded the Bank’s July expectation, although some of this strength is expected to be temporary. The rebound was driven by stronger energy production and robust export growth, both recovering from very weak performance in the first quarter. Housing activity has regained strength more quickly than expected as resales and housing starts catch up to underlying demand, supported by lower mortgage rates. This could add to already-high household debt levels, although mortgage underwriting rules should help to contain the buildup of vulnerabilities. Wages have picked up further, boosting labour income, yet consumption spending was unexpectedly soft in the quarter.  Business investment contracted sharply after a strong first quarter, amid heightened trade uncertainty. Given this composition of growth, the Bank expects economic activity to slow in the second half of the year.

Inflation is at the 2 percent target. CPI inflation in July was stronger than expected, largely because of temporary factors. These include higher prices for air travel, mobile phones, and some food items, which are offsetting the effects of lower gasoline prices. Measures of core inflation all remain around 2 percent.

In sum, Canada’s economy is operating close to potential and inflation is on target. However, escalating trade conflicts and related uncertainty are taking a toll on the global and Canadian economies. In this context, the current degree of monetary policy stimulus remains appropriate. As the Bank works to update its projection in light of incoming data, Governing Council will pay particular attention to global developments and their impact on the outlook for Canadian growth and inflation.

Information note

The next scheduled date for announcing the overnight rate target is October 30, 2019. The next full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR at the same time.