Experts have indicated Canada will need to build millions more homes in the next 10 years to meet our growing needs. To the casual observer the problem is easy to solve: just build more homes. For those in the real estate development field, the problem is much more complicated than this.
Montreal's housing market remained favourable to sellers in January, as selling times for single-family homes and condominiums shrank to their shortest since 2005, according to the Quebec Professional Association of Real Estate Brokers (QPAREB).
The selling times in the Montreal Census Metropolitan Area (CMA) went down to 69 days for single-family homes, 74 days for condominiums, and 73 days for plexes.
"Selling times continue to reflect particularly tight market conditions that are extremely favourable to sellers, for all property categories combined," QPAREB said.
The region witnessed 3,429 residential sales in January, up 16% from last year. Excluding Vaudreuil-Soulanges, where sales fell significantly by 17%, the five other main areas of the Montreal CMA reported robust increases in sales activity. Laval clocked the highest growth at 37%, followed by Saint-Jean-sur-Richelieu (33%) the Island of Montreal (18%), the North Shore (17%), and the South Shore (10%).
Also read: Montreal poised to hit new sales record
In terms of property type, plexes recorded the highest jump in transactions, hitting a sales growth of 36% to 335 sales. QPAREB said the low vacancy rates for rental properties in the region were the reason behind the renewed interest in this property category.
Condominium sales also increased considerably during the month, up 23% to 1,290 transactions. Single-family homes, on the other hand, recorded the highest number of transactions in the month at 1,800, reflecting an 8% growth.
The supply of residential properties for sale was not able to keep up with the increasing demand. Over the month, the number of homes up for grabs fell by 28% to 15,073 active listings. This rate of decline has not been seen in the month of January since 2000, according to QPAREB.
As a result of the stellar gains in sales and the limited supply, property prices across the Montreal CMA shot up, with all three property categories hitting new records. The table below shows the changes in prices across property types:
Single-family homes
353,000 (+12%)
526,800
Condominiums
275,000 (+11%)
369,000
Plexes
570,000 (+11%)
647,000
While there has been a deceleration in new home sales, we must keep the pedal to the metal and continue to train skilled trades workers for the future.
Many jurisdictions in the U.S. have been thinking outside the box to boost the housing supply. Here in Ontario, we’d be wise to follow suit.
This free summit will feature top experts in Canadian real estate who will share their knowledge on a broad range of topics. It will be presented on Sat. Jun. 18th from 12pm-3pm.
For Real Estate News and Market Updates & VIP Access to Exclusive Real Estate Investment Opportunities
Canadian Real Estate Wealth Media Corp. needs the contact information you provide to us to contact you with news and market updates and to share real estate investment opportunities. You may unsubscribe from these communications at any time. For information on how to unsubscribe, as well as our privacy practices and commitment to protecting your privacy, please review our Privacy Policy.
Diversity, equity and inclusion, better known by the acronym DEI, are buzzwords that permeate the workplace these days.
Ontario's construction sector will need to recruit about 71,800 new workers over the next six years to keep pace with retirements in the industry.
While markets across the country are seeing price corrections amid rising interest rates, Calgary has held strong.
The Bank of Canada announced yet another interest rate hike at its meeting on Thursday.
CREW has compiled a group of investment real estate agents that we think stand out for their quality service and dedication to the world of real estate investing.
“Sign up for our daily newsletter to get the latest news, updates and offers delivered directly to your inbox.”