Montreal home prices higher even as sales slow
June 10, 2021
Home sales in the Montreal census metropolitan area (CMA) fell in May 2021 even as prices for condos and plexes continued to climb, according to the Quebec Professional Association of Real Estate Brokers (QPAREB).
Montreal CMA saw 5,398 sales transactions in May, down 14 per cent month-over-month from an April record of 6,237. And, as of April, Montreal’s median prices had increased 39 per cent annually for single-family homes and 23 per cent year over year for condos. These came with a similarly strong sales level, which reached a new record high of 6,237 transactions in March.
The median price for condos in the area reached $365,000—2 per cent higher month-over-month than $357,000 recorded in April. Meanwhile, the median price for plexes climbed 3 per cent to $701,000 from $682,000 in the same period.
However, the median price of single-family homes slightly decreased by 0.8 per cent to $496,000 from $500,000 in April.
“In a context of soaring prices for single-family homes in the Montreal area and the easing of the health crisis, many households are interested in condominiums, which are experiencing a meteoric rise in prices,” said Charles Brant, director of the market analysis department at QPAREB. “In this context, small income properties (plexes) are also very popular among investors, particularly in areas surrounding the Island of Montreal, which is supported by a rental market that is expected to tighten as the purchasing power of households deteriorates.”
Quebec officials are disputing the Bank of Canada’s assertions that Montreal is one of the nation’s real estate markets exhibiting undue “exuberance.”