Sales of residential properties in the Montreal region decreased by 2% last month, compared to October of last year, the Professional Association of Real Estate Brokers of Quebec (APCIQ) indicated on Monday.
The number of transactions is thus the second lowest level for the month of October since the APCIQ began compiling market data in 2000. A total of 2,675 properties changed hands in October, compared to 2,740 in the same month last year.
“The combination of several negative factors contributes to rekindling a feeling of caution and favors postponements of purchasing projects,” observed the director of the APCIQ market analysis department, Charles Brant. “First of all, we must highlight the uncertainties created by the rapid slowdown of the economy and the greater difficulty in accumulating or maintaining a sufficient level of savings to cover all eventualities. This context makes it more difficult to provide capital for the acquisition of a property. It rather encourages debt, given the rapid rise in borrowing costs and the continued loss of household purchasing power. »
The association said sales of single-family homes totaled 1,347 in October, down 6% from 1,438 transactions during the same period last year, while sales of condominiums totaled 1,018. transactions, compared to 1,021 in October 2022. As for sales of buildings with two to five housing units, called “plexes”, they increased by 10% to reach 307 sales, compared to 279 sales a year earlier.
Active listings reached 17,518 in October, a 12% gain from 15,708 a year ago, while new listings climbed 10% to 5,816 from 5,306 one year earlier.
The APCIQ pointed out that the median price of a single-family home had reached $545,000 in October, compared to $510,000 a year ago, while that of a condominium had climbed to $390,000, compared to $380,000 a year ago. The median price of a plex stood at $735,000 last month, compared to $700,000 in October 2022.
According to the association, the most recent decisions by the Bank of Canada not to increase the key rate have not had a “stimulating effect” on demand, as was the case at the start of 2023. Consequently, the The quantity of properties available for sale has reached its highest level since the summer of 2019, before the pandemic. “This situation is conducive to market rebalancing and a plateauing or decline in prices,” explained Mr. Brant. It also provides more choice in the market for experienced buyers with enough equity to avoid significant mortgage financing. »
As for the different sectors of the census metropolitan area, two trends are emerging. The Island of Montreal and South Shore sectors recorded annual sales increases of 7% and 8% respectively. However, the North Shore, Laval, Vaudreuil-Soulanges and Saint-Jean-sur-Richelieu regions saw their transactions follow an opposite trajectory, with respective declines of 12%, 17%, 19% and 30% in sales. .