(Montreal) The euphoria in the residential real estate market in the Greater Montreal area has probably reached “its peak” while the data for June point to a stabilization of the market.
Posted at 3:41 p.m.
The number of residential transactions fell by 11% in June, compared to last year, to settle at 4,078 transactions, according to data released by the Professional Association of Real Estate Brokers of Quebec (APCIQ), Wednesday. The figure is lower than the average of 4,333 transactions recorded since 2017.
Median prices for single-family homes also moderated in June. They hit $570,000. This is a 12% increase from June 2021, but a decrease of $6,000 from May 2022.
“Although market conditions remain very tight to the advantage of sellers, we will finally observe, over the next few months, a downward trend in the level of outbidding and a loss of steam in the sustained rise in prices compared to 2021”, predicts the director of the APCIQ’s Market Analysis Service, Charles Brant, in a press release.
“Overall, prices have been stabilizing since last May, announcing that the market peak has been reached in Montreal, particularly in a context where qualifying households to obtain a mortgage loan is proving increasingly difficult,” adds- he.
The number of properties available for sale increased in the Montreal region for a sixth consecutive month. Registrations totaled 12,370, a 15% gain from June 2021.
It is on the island of Montreal where the largest drop in the number of transactions has been recorded, a decline of 20%. The South Shore and Laval sectors each suffered a 4% decline in the number of transactions.
The number of transactions fell by 7% on the North Shore, still in June, while the number of transactions fell by 13% in Saint-Jean-sur-Richelieu. The Vaudreuil-Soulanges sector remained stable.