The median price of homes has already fallen by 9% in the Montreal area since its peak reached last April, indicate the most recent statistics on the resale market collected by the Professional Association of Real Estate Brokers of Quebec (APCIQ).
Posted at 5:26 p.m.
Updated at 7:30 p.m.
The median home price was $525,000 in August compared to $580,000 in April. These are unadjusted data.
Compared to August 2021, however, the median price is up 5% in one year.
August data for the census metropolitan area (CMA) of Montreal are established from the Centris provincial database of real estate brokers.
“In August 2022, there were 2,681 transactions in the Montreal CMA, reports the APCIQ in its monthly press release, which represents a drop of 20% compared to the 3,347 transactions that took place last year in same month. The market continues to slow. »
At the same time, the number of signs for sale increases from month to month. The number of active listings increased by 37% in one year compared to August 2021. They went from 9,988 to 13,715 properties offered for sale. It is in the category of houses that the increase is the most marked, with a 58% increase in products for sale.
“The magnitude of the rise in mortgage interest rates is thus beginning to be reflected more incisively, with transaction activity slowing further and an accumulation of the inventory of properties offered for sale,” Charles Brant said in a press release. , Director of the APCIQ’s Market Analysis Department.
“The process of rebalancing the market is underway, manifested by a shift in the ratio of sales to new listings and a rapid decline in the proportion of sales of properties concluded following an overbidding process. This situation inevitably leads to a drop in prices and the erasure of the excessive gains resulting from the boom at the start of the year and which were at their peak in the spring”, he maintains.
The median price of condominiums rose to $385,000 in August and that of plexes (buildings with 2 to 5 units) to $697,000.
Speaking of plexes, this market segment has cooled down a lot lately. The number of transactions has fallen by 36% in one year, from 385 resales in August 2021 to just 248 transactions last month.