The Greater Montréal Real Estate Boards’s (GMREB) MLS® system shows a 9% decrease in transactions for May, compared to the same period in 2007, with 4,544 sales. This means a year to date decrease in sales of 4% compared to the same period last year. However, the median price of a single-family home is on the rise by 5% in comparison with May 2007.
“It’s good news for the market and naturally for sellers as prices are continuing to increase slowly and steadily. This is also helpful for buyers whocan be reassured that Montréal real estate continues to be a good investment,” says Michel Beauséjour, FCA, Chief Executive Officer of the the GMREB.
In the Montréal Metropolitan Area, 2,641 single-family homes were sold in May, a 15% decrease compared to May 2007. The sales of plexes with 2 to 5 dwellings decreased by 10%. Only the sale of condominiums continues to do well, with a 5% increase in sales.
“There are three variables that influence the real estate market: interest rates, job creation and consumer confidence. Interest rates are decreasing and job creation is on the rise,” says Michel Beauséjour.
“It’s positive news for the first two variables but the third variable, consumer confidence, has dropped from 50% in March to 38% today. This is likely causing a softening in the market and in our opinion, is probably the result of rising energy costs,” says Michel Beauséjour.
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MLS® Residential Statistics |
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Variation |
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| Active listings New listings Total sales Single-family Condominiums Plex (2 to 5 dwellings) Volume of sales Median price Single-family Condominiums Plex (2 to 5 dwellings) |
25,005 $230,500 |
+7 % |
Source: Greater Montréal Real Estate Board by Centris™
All areas have seen their activity slow down in May. The North Shore was affected the most with a 16% decrease in transactions. The South Shore (-7%), Laval (-5%) and Vaudreuil-Soulanges (-1%) were not hit as hard, while activity on the Island of Montréal went down by 8%.
In May, the median price of a single-family home in the Montréal Metropolitan Area reached $230,500, which represents an increase of 5% compared to last year. The prices of condominiums continue to rise with a 4% increase of the median price, which now reaches $188,000. Plexes’ median price went from $315,000 in May 2007 to $342,000 in May 2008, a 9% increase.
As of May 31, 2008, the number of active listings was 7% higher than on the same date last year. However, it remains a seller’s market.
