A Further Drop in Listings in the 3rd Quarter Fuels an Overheating of the Montreal Real Estate Market - APCIQ - Site web

L’Île-des-Sœurs, October 24, 2019 – The Quebec Professional Association of Real Estate Brokers (QPAREB) has 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, 10,850 residential transactions were concluded in the third quarter of 2019, a 13 per cent increase compared to the third quarter of last year and the 21st consecutive quarterly increase in sales in the Montreal CMA.

Sales

  • This was the highest number of sales in a third quarter since data started being collected by the Centris system in the year 2000.
  • For a third consecutive quarter, condominiums registered the largest increase in sales, as condo transactions jumped by 18 per cent, with a total of 4,062 sales. Also for the third consecutive quarter, this was a new sales record for this property category.
  • Sales of single-family homes and plexes (2 to 5 dwellings) also performed well, registering respective increases of 10 and 16 per cent.
  • All of the main geographic areas of the Montreal CMA registered a sales increase: Saint-Jean-sur-Richelieu (+36 per cent), Laval (+21 per cent), the South Shore (+17 per cent), the North Shore (+15 per cent) and Vaudreuil-Soulanges (+11 per cent) posted the largest increases, followed by the Island of Montreal (+8 per cent). It should be noted that all of these areas registered a new third quarter sales record.

Prices

  • The median price of single-family homes increased considerably in three main areas of the CMA: +8 per cent on the Island of Montreal ($530,000), +8 per cent on the North Shore ($285,000) and +7 per cent on the South Shore ($349,000). Increases were more modest in the other areas: +4 per cent in Laval ($354,495), +4 per cent in Vaudreuil-Soulanges ($335,000) and +2 per cent in Saint-Jean-sur-Richelieu ($265,000).
  • The median price of condominiums rose significantly across the CMA (+7 per cent) to reach $281,000. Strong price increases were registered on the Island of Montreal, with a jump of 8 per cent, as well as in the outlying areas: +15 per cent in Saint-Jean-sur-Richelieu, +9 per cent on the South Shore, +7 per cent in Vaudreuil-Soulanges, +6 per cent on the North Shore and, more modestly, +3 per cent in Laval.
  • The median price of plexes across the Montreal CMA rose steadily once again in the third quarter of the year, growing by 7 per cent to reach $555,000.

Active listings

  • The number of active listings fell for a seventeenth consecutive quarter, with 16,741 properties for sale in the Montreal CMA, a 21 per cent drop compared to the third quarter of last year.
  • The supply of single-family homes and plexes fell by 16 per cent and 15 per cent, respectively, while that of condominiums dropped by 29 per cent.
  • For all three property categories, this was the lowest number of properties for sale ever registered in the Montreal CMA since data started being collected.

Market conditions

  • The single-family home and condominium markets are exceptionally tight and clearly give sellers the upper hand in most geographic areas. A situation of overheating has clearly risen over the past eight months with an acceleration in price increases in most of the main areas of the Montreal CMA. The Island of Montreal and, more recently, the markets surrounding the Island of Montreal, are affected for these two property categories.
  • The condominium market has become particularly tight. In one year, the number of months of inventory has been reduced by three months, which reflects the speed at which this market segment is evolving into a seller’s market.
  • The plex market is tightening more moderately across the CMA. However, a situation of overheating has been established on the Island of Montreal, particularly in its central neighbourhoods.

“The increase in sales and the decrease in listings have both intensified over the past four quarters, leading to a rapid tightening of market conditions, particularly for condominiums,” said Julie Saucier, President and Chief Executive Officer of the QPAREB. “As a result, the third quarter has once again registered a significant acceleration of median prices, a trend that has been seen since the start of the year,” she added.

Province of Quebec: Another Record-Setting Quarter for Sales

The QPAREB also released its most recent residential real estate market statistics for the province of Quebec, based on the real estate brokers’ Centris provincial database. In total, 21,662 sales were concluded in Quebec in the third quarter of 2019, which represents a new third quarter sales record and a 16 per cent jump in sales compared to the third quarter of last year. Such an increase has not been seen since the third quarter of 2003. This was also the 21st consecutive quarterly increase in residential sales in Quebec.

Here are some of the highlights for the third quarter of 2019:

Sales

  • Sales increased for all three property categories, but condominiums and plexes (2 to 5 dwellings) stood out with a 19 per cent jump in transactions (5,227 and 1,817 sales, respectively). Sales of single-family homes also increased significantly, rising by 14 per cent (14,505 transactions).
  • Geographically, all six of the province’s census metropolitan areas (CMAs) registered a double-digit increase in sales: Quebec City (+24 per cent), Trois-Rivières (+22 per cent), Gatineau (+18 per cent), Montreal (+13 per cent), Saguenay (+13 per cent) and Sherbrooke (+12 per cent).
  • Several of the province’s smaller urban centres also posted strong sales results, including the agglomerations of Joliette (+70 per cent), Shawinigan (+41 per cent), Thetford Mines (+41 per cent) and Saint-Hyacinthe (+38 per cent). Many other urban centres also posted increases ranging from 15 to 35 per cent.

Active listings

  • The downward trend in supply continued for a fifteenth consecutive quarter. Between July and September, there was an average of 54,522 properties for sale in the real estate brokers’ Centris system, down 12 per cent compared to the third quarter of last year.
  • The decrease in the number of properties for sale over the past year was particularly pronounced in the Gatineau (-23 per cent), Montreal (-21 per cent) and Sherbrooke (-17 per cent) CMAs.

“Residential sales in Quebec continued to break records in the third quarter of 2019. It’s clear that the Montreal area does not have a monopoly on market vitality, as it has spread to other metropolitan areas and many agglomerations across Quebec,” said Charles Brant, Director of the QPAREB’s Market Analysis Department. “The result is often a rapid decrease in active listings and, in many cases, significant price increases. There is thus a catching-up effect in recovering markets or signs of overheating, especially for condominiums, in the tightest markets, such as Montreal,” he added.

Prices

  • The median price of single-family homes across the province stood at $255,000 in the third quarter of 2019, a 3 per cent increase year-over-year.
  • The largest price increases for single-family homes (non-exhaustive) were in the agglomerations of Mont-Tremblant (+28 per cent), Shawinigan (+19 per cent), Sorel-Tracy (+14 per cent), Joliette (+12 per cent) and Saint-Hyacinthe (+9 per cent), as well as the Gatineau CMA (+6 per cent).
  • The median price of condominiums increased by 6 per cent in Quebec, with half of all condos selling for more than $255,000.

Selling times

  • Properties sold in the third quarter of the year found a buyer faster than in the third quarter of last year. Single-family homes sold in an average of 96 days, which is 12 days less than during the same period last year.
  • The average selling time of condominiums also dropped significantly over the past year. Across the province, a condominium sold in the third quarter of the year remained on the market for 91 days, which is a drop of 23 days compared to the third quarter of 2018. This was the thirteenth consecutive quarter that average selling times fell for condominiums and the eleventh consecutive quarter for single-family homes.

About the Quebec Professional Association of Real Estate Broker

The Quebec Professional Association of Real Estate Brokers (QPAREB) is a non-profit association that brings together more than 12,700 real estate brokers and agencies. It is responsible for promoting and defending their interests while taking into account the issues facing the profession and the various professional and regional realities of its members. The QPAREB is also an important player in many real estate dossiers, including the implementation of measures that promote homeownership. The Association reports on Quebec’s residential real estate market statistics, provides training, tools and services relating to real estate, and facilitates the collection, dissemination and exchange of information. The QPAREB is headquartered in Quebec City and has its administrative offices in Montreal. It has two subsidiaries: Centris Inc. and the Collège de l’immobilier du Québec. Follow its activities at qpareb.ca or via its social media pages Facebook, LinkedIn, Twitter and Instagram.

About Centris

Centris.ca is Quebec’s real estate industry website for consumers, grouping all properties for sale by a real estate broker under the same address. Société Centris provides real estate industry stakeholders with access to real estate data and a wide range of technology tools. Centris also manages the collaboration system used by more than 13,000 real estate brokers in Quebec.

 

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For more detailed statistics on the Montreal area, consult the QPAREB Barometer.

 

Taïssa Hrycay
Director
Communications and Public Relations1-888-762-2440 or
514-762-2440, ext. 157
taissa.hrycay@qpareb.ca
Nathalie Rochette
Assistant Director
Communications and Public Relations1-888-762-2440 or
514-762-2440, ext. 238
nathalie.rochette@qpareb.ca