The Quebec Professional Association of Real Estate Brokers (QPAREB) recently released its statistics for January 2024, revealing a dynamic start to the year for the Montréal resale market. With 2,077 transactions recorded, the market has seen a significant increase of 18% over the previous year, although these figures remain below the historical average for this period.
Renewed Optimism
This upturn in activity is largely attributed to renewed optimism about interest rates. Economic forecasts at the end of 2023 suggested the end of the rate hike cycle, with expectations of a reversal by 2024. This prospect led to a reduction in fixed mortgage rates, stimulating activity in the property market.
Continuing Challenges for the Resale Market
Despite this positive trend, the market faces several challenges, not least the slowdown in economic activity and the uncertainties it generates. However, a possible change of direction by the Bank of Canada, with an expected reduction in interest rates for the year, provides a glimmer of hope for a more marked recovery in transaction activity, especially in view of the peak spring season.
Growth in All Sectors
Sales rose in all the main sectors of the Montréal census metropolitan area (CMA), with a remarkable performance on the South Shore, which recorded 541 transactions, marking a 36% increase. Other areas, such as the North Shore, Laval and Saint-Jean-sur-Richelieu, also significantly increased.
Property Category Trends
Sales of single-family homes rose by a particularly notable 22%, while condominiums and small-income properties also saw their sales increase, by 15% and 6% respectively.
Inventory on the Rise
The number of listings rose by 16% compared with the previous year, with 16,838 properties listed in January 2024. This increase affects all property categories, although the inventory remains below the historical average.
Sales Times and Median Prices
The average selling time has increased slightly for all property categories, but remains within a reasonable range. On the other hand, median prices continued to rise, with increases of 5% for condominiums and 7% for single-family homes and plexes.
Future Prospects
Although the growth in median prices remained stable compared with the previous month, annual variations indicate a significant increase in some areas, particularly on the Island of Montréal, in Saint-Jean-sur-Richelieu and in Vaudreuil-Soulanges.
Conclusion
The Montréal real estate market started 2024 on a positive note, reflecting renewed confidence among buyers and sellers. Despite certain economic challenges, the outlook for improved financing conditions and significant increases in sales in all sectors suggest a dynamic and promising market in the months ahead. Source: QPAREB
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