Statistics

Forecast for growth in property prices in Montreal in 2022.

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In 2021, prices continued to rise both in Montreal and beyond in remote small towns. The issue of housing affordability has become critical in the Montreal region, especially for young families looking to buy their own home. Those who did not want to leave Montreal had to buy condos and 2-plexes to start at least somewhere and stop paying “someone else’s mortgage” for rental housing.

Selling for prices above the starting price is no longer surprising. As a result, more than 50% of real estate was sold for more than the initial price. Those who bought a house, condo or 2-plex 5 years ago are in a fortunate position and can afford to move on by selling their homes and buying the best.

But what about those who did not buy real estate 5 years ago and are desperately watching the rise in prices, realizing that they have to pay twice as much today? So, buy or wait?

Prices in Montreal are already near their highs, and most likely will not rise as much in 2022. The same cannot be said about the prices in the cities adjacent to it. If the average price for houses in Montreal increased by 23% in 2021, then in 2022 prices will continue to rise, but by no more than 1%, analysts say. The rise in condo prices in 2022 will also slow down and amount to 3%. My advice: if you can’t buy a home in Montreal itself, look at what you can count on in the surrounding area.

Canada in general, and Quebec in particular, due to its economic strength and financial stability, will continue to attract many immigrants. Quebec is currently the economic powerhouse of the country thanks to huge investments in its infrastructure and diversified economic structure. Therefore, in 2022, one should not expect a decline in property prices. In addition, many immigrants buy real estate in Montreal without a mortgage, so they will not be hindered by an increase in mortgage interest.

All analysts agree that there will be a large shortage of offered real estate for sale, which cannot but affect the rise in prices. The government is of course trying to slow down the rate of price growth. So, the Bank of Canada has already announced an increase in mortgage interest in 2022 in the hope of slowing down the rise in real estate prices and allowing native Canadians to buy their own homes.

Still have questions? Planning to sell or buy? Call +1-514-999-9260, ask me a question here on the site or write to my email

Montrealers leaving the island

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The majority of Montrealers who have left the city for the suburbs have been living on the outskirts of the city, according to a report released Thursday by Canada Mortgage and Housing Corporation (CMHC). In general, families living in areas bordering the island of Montreal, such as near the Honore-Mercier Bridge or in the Riviere-des-Prairies neighbourhood, are more likely to move to the surrounding suburbs. Those who live in the more central neighbourhoods tend to stay in the metropolis.

SINGLE-FAMILY HOUSES REMAIN POPULAR

The percentage of Montrealers buying single-family homes has increased over the past six years. From 2015 to 2019, between 22 per cent and 24 per cent of them were already leaving the island to buy a bungalow in the suburbs. This proportion rose to 28.8 per cent in 2020. Interestingly, in July 2020, this percentage jumped to 31 per cent, the quarter after the pandemic began. The number of single-family home transactions rose in most municipalities off the Island of Montreal in that period. On the North Shore, the largest increases were observed in Saint-Eustache, Saint-Jerome, Saint-Lin des Laurentides, L’Assomption and Rosemere, and others. As for the South Shore, the municipalities of Saint-Jean-sur-Richelieu, Longueuil (Vieux-Longueuil and St-Hubert sectors), Beloeil and Sainte-Julie welcomed several families who had previously lived in the metropolis. This wave of new households has probably created additional pressure on prices in a context of very limited supply.

Source : ctvnews.ca

Un jeune sur cinq a acheté une propriété en pleine pandémie au Québec

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Une enquête de Royal LePage dévoilée jeudi révèle que 18 % des milléniaux québécois et 28 % des milléniaux montréalais ont acquis un condo, une maison ou un immeuble depuis la mi-mars 2020.

Ce sont surtout les banlieues qui ont profité de l’engouement des 11 derniers mois, les jeunes cherchant une qualité de vie à long terme et n’hésitant plus à s’éloigner du centre, maintenant que le télétravail est devenu une possibilité.

«Les bas taux d’intérêt et la possibilité de travailler de la maison sont actuellement les principaux moteurs de motivation chez les jeunes acheteurs», a expliqué par communiqué Roxanne Jodoin, une courtière immobilière de Royal LePage Privilège, à Saint-Bruno-de-Montarville, en Montérégie.

La tendance à acheter devrait se maintenir chez les milléniaux, 17 % des répondants québécois et 19 % des répondants montréalais ayant indiqué leur souhait de devenir propriétaires d’ici la fin de l’année. Dans cinq ans, les mêmes intentions grimpent respectivement à 69 % et à 68 %.

Source : TVANOUVELLES.CA

Factors that drive Montreal housing market.

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Lower mortgage rates, help for first-time buyers and increased immigration levels are all pushing the housing market upwards.

The most optimistic forecast (or the most pessimistic, if you’re hoping for lower prices) comes from Capital Economics, which in a report last Friday said “momentum is building” in house price growth. If things stay at their current trend, house price growth will be running at an annual rate of 6 per cent by March of next year.

“The rise in the sales-to-new listing ratio suggests that house price inflation will surge,” senior Canada economist Stephen Brown wrote.

The sales-to-new-listing ratio measures how many houses are selling against how many houses are coming on to the market. The higher the ratio, the tighter the market, so the larger the price growth you can expect.

Though it varies from market to market, in general a ratio above 60 per cent suggests price hikes ahead.

sales-to-new listing ratio
CIBC WORLD MARKETS This chart from CIBC shows the sales-to-new-listings ratio by province. At around 70%, Quebec’s housing market is the tightest in the country, while Alberta, Saskatchewan and Newfoundland have ratios low enough to suggest stagnant or falling prices.

The best rates available for a five-year fixed-rate mortgage at the major banks fell to around 2.7 per cent today from 3.5 per cent at the start of this year, Brown said, citing data from RateSpy.com. The lower rates mean Canadian buyers can afford about 10 per cent more on the purchase price of a home than they could a year ago.

Source  – Read full article : www.huffingtonpost.ca.

 

REPRISE DES VENTES RÉSIDENTIELLES AU CANADA EN AVRIL

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Selon l’Association canadienne de l’immeuble (ACI), les ventes résidentielles au Canada ont grimpé de 4,2 % en avril 2019 par rapport au même mois de l’année précédente.

« Les ventes se stabilisent dans les cinq marchés urbains les plus actifs », affirme Gregory Klump, économiste en chef de l’ACI. « Le Grand Vancouver ne figure plus parmi les cinq premiers marchés urbains pour la première fois depuis la récession et il favorise pleinement les acheteurs. Les ventes à cet endroit continuent de tendre à ralentir, tandis que les acheteurs s’adaptent au cocktail de défis liés à l’abordabilité du logement, à l’accessibilité réduite au financement en raison de la simulation de crise pour les prêts hypothécaires et aux changements apportés à la politique du logement du gouvernement de la Colombie-Britannique », précise M. Klump.

Du côté des provinces, la Colombie-Britannique (-18,8 %), a connu une baisse sensible des ventes résidentielles comparativement à avril 2018, tandis que le Québec (+10,9 %), l’Ontario (+10,1 %) et enfin l’Alberta (+2,6 %) affichent une hausse.

Le prix moyen des maisons vendues au pays en avril 2019 était de 495 000 $, soit une hausse de 0,3 % comparativement au même mois l’année dernière. Si l’on exclut du calcul les marchés du Grand Vancouver et du Grand Toronto, les deux marchés les plus actifs et les plus chers au Canada, le prix moyen national baisse à juste un peu plus de 391 000 $.

En savoir plus sur cette nouvelle : Communiqué officiel de l’ACI