Vancouver and Toronto were the stars of the Canadian property market for years. Prices rose enormously and buyers had fever to outbid each other. In the meantime, Montreal just continued to sail, prices that rise modestly if they were not in the right way.
Now it seems that it is our time to shine.
The housing market in Montreal started to recover towards the end of 2015 and has been gaining since then. According to the latest prediction by the Canadian mortgage and housing corporation (CMHC), which was released on Wednesday, the market is far from peaking.
CMHC expects in Vancouver and Toronto that the start of the houses and sales will slow in the next few years. On the other hand, the strong employment growth in Montreal is expected to stimulate demand up to 2020, which will lead to an ever lower inventory of single-family homes for sale.
According to the report, prices in Montreal are likely to continue to rise and rents as well. The boom in condo construction and rented housing with several families will also be continued. In other words, the warm line of Montreal shows no sign of cooling.
Although prices are rising, Montreal is still considered a relatively affordable market. In contrast to Vancouver and Toronto, the rise in house prices in Montreal remained in line with economic fundamentals. In his market outlook report, CMHC said overstatement is not yet a concern.
According to Brad Henderson, president and CEO of Sotheby & # 39; s International Realty Canada, there is still plenty of room for growth in prices in Montreal. The average price of a single-family home in the Montreal area may have risen six percent from a year, but it still remains at a relatively affordable $ 335,000.
"It's a world city, a world-class city, that's going to come into its own.When people look at the price of real estate in Toronto and Vancouver and other cities around the world, people realize what a bargain it is in Montreal, "Henderson said.
Demand for real estate in Montreal continues to grow while the offering is dropping. The Confederation of Real Estate Corporations in Quebec reports that Montreal has now seen 17 consecutive quarterly increases in residential sales. Meanwhile, the number of offers has fallen for 12 consecutive quarters.
More demand + less supply = higher prices. And indications are that the trend is not likely to be reversed.
And indeed, it is already a pod for buyers in certain parts of Montreal. In October another CMHC report was found in certain sectors of the island of Montreal, including in the southern part of the western island, the southwest, Rosemont, Villeray, Notre-Dame-de-Grâce, Montreal West and Nuns. Island. four or fewer sellers for each buyer.
Although condo construction is increasing, the supply still does not meet demand in the most popular areas of the city, such as the center of Montreal. According to data from Altus Group, more than 3,000 new condo units were launched in the Great Britain region last quarter, but nearly half of them have already been sold.
The CMHC outlook predicts that the average price increase will be between now and 2020. beat the annual average of the past few years, even if an expected increase in mortgage rates cools down demand.
In general, it looks like a homeowner in Montreal. And unlike Vancouver or Toronto, it is still possible for Montrealers who rent to buy their own homes if they want to.