Centris Residential Sales Statistics - May 2019 - Sales Intensify on the Outskirts of the Island of Montreal
L'ÎLE-DES-SŒURS, QC, June 6, 2019 /CNW Telbec/ - 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, 5,607 residential sales were concluded in May 2019, a 6 per cent increase compared to May of last year. This was also the 51st consecutive monthly increase in sales.
Residential Statistics – Montreal CMA
Plex (2-5 dwellings)
Sales by geographic area
The main geographic areas on the periphery of the Island of Montreal registered sustained increases in sales in May.
The North Shore, Laval, the South Shore and Saint-Jean-sur-Richelieu all showed strong momentum with respective sales increases of 15, 15, 10 and 17 per cent.
In contrast, sales on the Island of Montreal fell slightly by 1 per cent, while sales in Vaudreuil-Soulanges decreased by 12 per cent.
Sales by property category
Across the Montreal CMA, sales of single-family homes increased by 5 per cent (3,048 transactions), sales of condominiums rose by 7 per cent (2,001 transactions) and sales of plexes (2 to 5 dwellings) jumped by 13 per cent (550 transactions), compared to May of last year.
The median price of single-family homes across the CMA continued to climb, growing by 5 per cent to reach $340,000. The median price of condominiums increased by 2 per cent to reach $261,000.
Plexes registered the largest increase in median price, rising by 6 per cent year over year to reach $550,000.
Number of properties for sale
In May, there were 19,915 active residential listings in the Montreal CMA, an 18 per cent decrease compared to May of last year.
"Properties are selling faster and faster in the Montreal area, as the average selling time – for all property categories combined – stood at 69 days in May, which is 14 days less than one year ago," said Nathalie Bégin, president of the QPAREB board of directors. "Single-family homes and plexes are selling the quickest, with respective selling times of 63 days and 71 days, while it takes an average of 77 days for a condominium to find a buyer," she added.
Bank of Canada holds interest rate, drops growth forecast for 2019
OTTAWA - The Bank of Canada has set aside discussion of interest rate hikes, at least until the economy re-emerges from what it predicts will only be a temporary slowdown.
The central bank kept its key interest rate unchanged Wednesday and appeared to be in no hurry to move the benchmark any time soon. Unlike the bank's recent statements, the announcement made no mention of a need for future increases.
The bank also cut its 2019 growth forecast, a number weighed down by its prediction the economy nearly ground to a halt at the start of the year.
The decision Wednesday to stand pat, which was widely expected, left the rate at a still-stimulative 1.75 per cent for a fourth-straight announcement. The pause has followed a strong stretch for the economy that saw governor Stephen Poloz introduce five rate hikes between mid-2017 and last fall.
The economy had been running close to full tilt for most of 2017 and 2018, the bank said, before a sudden deceleration in the final three months of last year.
Poloz said the changing conditions have made the bank "data dependent in both directions."
"Given where we are today we think that rates are appropriate for this outlook," Poloz told reporters in Ottawa.
"If there was a new, negative disturbance — that would be something we'd have to consider as fodder for whether interest rates needed to be revised down."
The soft patch, which was more severe than the bank anticipated in January, was largely caused by a drop in oil prices and unexpectedly weak numbers for investment and exports. It also underlined how weaker-than-expected housing and consumption bogged down the economy.
The negative effects have spilled into 2019, said the bank, which also released its latest quarterly projections Wednesday.
The bank is now predicting growth in real gross domestic product of 1.2 per cent for 2019, down from its January forecast of 1.7 per cent. It also projected growth at an annualized rate of just 0.3 per cent in the first three months of 2019.
Poloz, however, was optimistic about the rest of the year and beyond — once Canada gets past what he called a "detour."
The bank predicted the economy to pick up its pace in the second quarter on expectations of stronger housing activity, consumer spending, exports and business investment. It expects the economy to build momentum through 2019 before returning to above-potential growth of 2.1 per cent in 2020 and two per cent in 2021.
Poloz described the tone of the closed-doors policy discussion among governing council members as "a little bit skeptical of some of the most-negative data" that's been coming in. He added the skepticism also goes both ways, which is why incoming data will be important.
"By all bits of analysis it's a temporary thing, but we need the proof," he said.
"The data from here will tell us what to do. But if our forecast is right, which I firmly believe it is, (then) what that means is that interest rates are more likely to go up than down over time."
The bank said it will pay close attention to the evolution of household spending, oil markets and global trade policy.
Even with the anticipated improvements, the bank avoided mentioning future rate hikes in its statement Wednesday like it had in the past.
"Given all of these developments, governing council judges that an accommodative policy interest rate continues to be warranted," the bank said.
"We will continue to evaluate the appropriate degree of monetary policy accommodation as new data arrive."
The central bank's March rate announcement said there was "increased uncertainty about the timing of future rate increases." The January statement said the benchmark would need to rise over time to a so-called neutral range that had been estimated at between 2.5 and 3.5 per cent.
In addition to the change in the statement's language, the central bank also updated its estimate Wednesday of the neutral — or destination — range, which is the preferred level when the economy is running at full capacity and when inflation is within its target zone of one to three per cent.
The bank said its new, slightly lower estimated range is between 2.25 and 3.25 per cent.
Many economists expect the bank to leave the interest rate untouched until at least late in the year, and some have warned a cut could arrive before the next increase.
The Bank of Canada will make its next policy announcement on May 29.
Looking ahead, the bank projects a gradual expansion of investment outside the oil and gas sector before it turns into solid growth in the second half of 2019. It expects the boost to come with companies' responses to capacity constraints, higher operating profits and investment incentives from the federal and Ontario governments.
Exports of goods and services, in particular, are expected to grow with a lift from foreign demand, though the bank noted there's still uncertainty given global trade tensions.
The bank predicts consumption to continue expanding along with growing wages — even though households are burdened with high debt loads — and for the dampening effects of recent housing measures to fade over time.
Real-estate price increase in Montreal tops Toronto, Vancouver
The aggregate price of properties sold during the final three months of 2018 was up 4.1 per cent from the year before
For the second straight quarter, the price of residential real estate in the Montreal area rose faster than in Toronto or Vancouver during the fourth quarter of 2018, according to the Royal LePage House Price Survey released on Friday.
The aggregate price of a home — a weighted average based on the median value of condos, bungalows and two-storey houses sold during the period — was up 4.1 per cent during the last three months of 2018 when compared to the equivalent period in 2017, reaching $407,230, the real-estate company said.
The median price of a two-storey home in the region was up 3.5 per cent, when compared with the fourth quarter of 2017, at $517,190. The median price of a bungalow was up 5.1 per cent to $315,257, while the median price of a condo rose 4.9 per cent to $328,254.
Royal LePage credited the increase to Montreal’s strong economy and the fact that real-estate prices in the city have seen relatively steady growth — rather than the soaring prices of the Vancouver and Toronto areas.
The number of condos sold rose by 11.8 per cent between the fourth quarter of 2017 and the equivalent period in 2018, while the sale of two-storey houses was up 2.6 per cent over the same period.
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