My Take on the Montreal Residential Real Estate Market

The market does not operate in a vacuum and real exterior forces are exerting pressure on the residential market; I believe we are heading into a period of contraction. We’re 2% down in terms of the number of transactions in Montreal year to date compared to 2007. Prices are still growing above the inflation rate of 3.5% with a 5% rise for single family homes over September 2007, but there are 10% more active listings on the market compared to the same period last year….

According to the CMHC’s second quarter report, the Listing-to-Sales ratio in Metropolitan Montreal remains in favor of the Seller except for units from $300,001 to $500,000 where it is considered to be a Balanced Market and units over $500,000 where it is a Buyer’s Market.

Of all the economic indicators, I’d keep my eyes on the unemployment rate as no matter how accessible interest rates are, if people are not working or fear loosing their jobs, they are not getting mortgages and buying property.