Thirteen years after buying her condominium in Notre-Dame-de-Grâce, Ligia Pena is ready to move, but the PhD student, who is self-employed, has concluded she can't afford to.
"As much as I can make a lot of money selling my own condo, because the value has increased significantly in the last couple of years, I just can't afford anything — not only on the island, but off the island, too," Pena said.
The tight market has led Royal LePage to revise its forecast upward to reflect the continued pressure on housing prices. In a survey released Tuesday, the realtor predicted that home prices in the greater Montreal region will rise by 12.5 per cent in the last quarter of 2022, compared to the same quarter last year, to an average of nearly $600,000.
"Our extremely hot sellers' market and our low inventory situation continues and is anticipated to continue right through this year," said Sean Broady, a real estate broker with Royal LePage in Beaconsfield.
"I think they were anticipating a little bit more inventory to hit the market, and that just hasn't happened."
"There's a lot of buyers," agreed Martin Desjardins, a real estate broker for the Montreal-based real estate agency, Keller Williams.
"We're seeing that imbalance between the inventory and the supply — and still the thirst from buyers."
Catch-22 for would-be buyers
Many of Desjardins's clients are like Pena: they're ready to sell their homes but are choosing not to since they've become priced out of the market, he said.
"People aren't selling their houses because they can't find something. That's one of those Catch-22s."
The average cost of a home in the greater Montreal area rose by 18.5 per cent in the first quarter of 2022, according to the Royal LePage survey — climbing from an average of $482,250 to $571,400.
For single-family detached houses, the increase was 19.8 per cent — rising from an average of $531,000 at this time last year to $636,200. For condominiums, the increase was 17.7 per cent, from an average of $379,500 to$446,700.
Prices rising fastest in suburbs
The price of homes is increasing at an even faster rate in Montreal's suburbs, said Royal LePage, as it has for the past six consecutive quarters.
While Montreal was once the epicentre of Quebec's housing market, the popularity of remote work over the last two years has transformed the market, with more people now flocking to suburban areas, Broady said.
"For young buyers who are trying to get into the market, the drive out of the city can be 45 minutes-plusto get into their first home," he said, "or they have to buy a little condo to compromise just to get in the market, build some equity and then move up."
The highest increase in home prices on Montreal island was in the east end, Royal Lepage reported, where the average cost of a single-family detached home jumped by 25.8 per cent — going from $488,000 to $613,800.
In the city centre, the average cost increased by 11.7 per cent year-over-year, to $692,500 in the first quarter of 2022. A single-family home was up 14.3 per cent, to $1,062,800, while the average cost of a condominium was up 10.7 per cent, to $530,900.
Bank rate change has little effect
Nationally, the average home increased in value by about 25 per cent to $856,900, according to the survey.
It's the highest gain in average home prices since the company began tracking the prices of homes, Royal LePage said.
In its latest move to rein in high inflation, the Bank of Canada hiked its benchmark interest rate by half a percentage point to one per cent last week.
Broady said the interest rate increase has yet to have an impact on home prices.
"It hasn't had any effect whatsoever," he said. "I think even given the one per cent increase and the fact that rates have gone up, there isn't enough there to significantly cool the market."
Meanwhile, Penasaid she simply feels stuck. And she hopes the government will do more to help those who do not own a home get a foot in the door.
"I hope other measures are taken into consideration to help cool down the market and entice people to sell," said Pena, "but also make it more affordable for people of all income brackets to accessaffordable housing."
The average cost of a home in the greater Montreal area
greater Montreal area
Greater Montreal (French: Grand Montréal) is the most populous metropolitan area in Quebec and the second most populous in Canada after Greater Toronto.
https://en.wikipedia.org › wiki › Greater_Montreal
Royal LePage now expects the aggregate price of a home in the GMA to increase 3.0% in the fourth quarter of 2023 compared to the same period in 2022, to $560,629, which is an increase of 5 percentage points over the company's forecast released last December.
Weaker economic growth and higher mortgage rates continue to slow the economy in 2023. As a result, we expect a price decline between 2022 and 2023, but the average price will not revert to pre-pandemic levels. However, we expect this decline to bottom out sometime in 2023.
The average home sold price reached $565,786 in April 2023, for a 7% annual decrease. While Montreal home sales are down 27% year-over-year, active listings are up by 61% year-over-year.
Average Canadian house price rose to $716,000 in April — up by $100K since January. After plunging due to interest rate hikes throughout last year, the average price of a Canadian resale home has now increased for four months in a row, new numbers showed Monday.
Home values in Metro Montreal declined in 2022, though there are signs of a possible turnaround this Spring. In comparison to recent years, Montreal homebuyer demand has greatly decreased. A multi-factor analysis identifies Metro Montreal as a moderately risky real estate market.
Homebuyer.com data analysis indicates that, for first-time home buyers, June 2023 is a good time to buy a house relative to later in the year. This article provides an unbiased look at current mortgage rates, housing market conditions, and market sentiment.
Despite concerns about high inflation, rising rates, and the possibility of a recession, public sentiment suggests that 2023 may still be an excellent time to sell. The Canadian property market could soon be experiencing a downturn, with declines in house sales and prices expected in the next 18 months.
The market is constantly changing, but will always remain active whether you are looking 5 years ahead or 10 years ahead, which means that property also remains a great investment (not to mention all the equity you're building by living there).
The median price of a single-family home in Quebec decreased by 2% year-over-year to $420,000 for June 2023. While in comparison, nationally, the average detached home sale price was down 17.5% from a year ago to $781,300. The median condo price in Quebec decreased by 5% year-over-year to $354,500 for June 2023.
Share. Centraide Montreal is warning that the city's housing crisis has reached staggering heights, with hundreds of thousands of people not able to make ends meet.
Residential sales in the Montreal CMA totalled 3,755 in April 2023. This drop of 26 per cent compared to the same period last year brings sales to the lowest point since 2000 for a month of April, excluding April 2020 which was exceptional due to the pandemic.
The price of a detached house in Montreal's downtown and southwest rose 42.14 per cent to $958 per square foot, while townhouses came up 44 per cent to $768 and condos 13.55 per cent to $805.
'The housing market is really overvalued' Economist Moshe Lander discusses plunging home sales in Canada and the growing risk that tens of thousands could default on mortgages.
Toronto, Canada's largest city, has been declared the world's largest real estate bubble. The median home was $1.19 million in Q4 2022, which would require $244k/year to service that mortgage.
Under this scenario, CMHC expects the average price will then tick up to $694,196 next year and $746,410 in 2025. Sales will amount to 423,128 this year, followed by 473,357 next year and 505,215 in 2025.
Non-residents have the same right of ownership as residents of Canada. Non-residents are those who stay in the country for six months or less. Non-residents can still buy property and have a bank account. Those who plan on staying in Canada for more than six months per year are required to apply for immigrant status.
The average cost of living in Montreal is $2,900/month for a single person who rents. This average is based on many factors including the cost of housing, transportation, groceries, and entertainment.
In Montreal, you'll typically need an income of over $95,000 a year to be able to afford the monthly mortgage payments for the average price of a home.
Although home prices are expected to improve in the second half of the year, the California median home price is projected to decrease by 5.6 percent to $776,600 in 2023, down from the median price of $822,300 recorded in 2022.
“[W]ith the rate of inflation decelerating rates should gently decline over the course of 2023.” Fannie Mae. 30-year fixed rate mortgage will average 6.4% for Q2 2023, according to the May Housing Forecast. National Association of Realtors (NAR).
“We expect that 30-year mortgage rates will end 2023 at 5.2%,” the organization noted in its forecast commentary. It since has walked back its forecast slightly but still sees rates dipping below 6%, to 5.6%, by the end of the year.
Average home prices were expected to rise about 2% and 4% in 2024 and 2025, respectively, similar to median predictions in the last poll. "Spring 2023 increasingly looks like the turnaround point for Canada's housing market after a year-long slump.
As of our June mortgage rate outlook, we predict that in the long term mortgage rates will trend towards 4%. The Bank of Canada is anticipated to cut rates by 2% over 2024 and another 1% over 2025. Adjustable rate mortgage holders will see lower payments.
Broadly speaking, the Act prohibits "non-Canadians" from purchasing any residential property directly or indirectly from January 1, 2023, to December 31, 2024.
The principal reason comes along with the tempting architecture and landscape of the city. Montreal is announced as the second largest city of Canada. It is regarded as one of the most affordable places to invest revenue in real estate.
Additionally, the city is home to many universities and colleges, making it an ideal place for students. On the other hand, the cons of living in Montreal include its cold winters, high cost of living, and language barrier. Additionally, the city can be quite crowded during peak tourist season.
They expect home prices to improve in Q3 & Q4 this year, over in 2023 they expect the medium home will delince 5.6% compared to 2022, to $776,600 in 2023 ($822,300 in 2022). They had predicted a median 2023 price of $758,600 forecast last October.
Quebec's average home sale price decreased 4.51% year-over-year to $451,313 for June 2023. While in comparison, nationally, the average home sale price was down 15.8% from a year ago to $715,400. The median price of a single-family home in Quebec decreased by 2% year-over-year to $420,000 for June 2023.
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