Metro Montreal is a sophisticated city of 4.3 million people that has earned recognition as one of the top 100 cities in the world, coming in at number 57. Many would say that Montreal is the most European city in North America in terms of culture, architecture, and landmarks.
The pandemic turbocharged Metro Montreal’s housing market, driving up prices at a remarkable pace and causing aspiring homeowners to be pushed further away from their dreams. And just when they thought things couldn't get more difficult, rising interest rates now force more potential buyers to sit on the sidelines.
For those contemplating selling their homes, time is of the essence. Early Spring is the best time to sell because there is typically less supply.
Prospective homebuyers might consider waiting for a lighter mortgage burden. Mortgage rates are relatively high; unfortunately, patience will be needed because rates are anticipated to remain high until mid-2024.
The market fundamentals are riddled with risk and uncertainty as consumer sentiment has taken a substantial hit. But remember, consumer sentiment can be volatile and has proven to be an unreliable predictor of future price trends.
Metro Montreal Detached House Prices
Let's delve into the world of Metro Montreal’s detached house prices. Since reaching its peak in the spring of 2022, prices have dropped significantly. The market is volatile and unpredictable, and that is a problem. While the government managed to shield the real estate market from the recession begun by the pandemic, the market is now grappling with the weight of higher interest rates.
Our politicians are striving to return the market to a more typical real estate cycle, where prices grow consistently and modestly at an annual rate of 1 to 3%, in line with income growth. They are orchestrating efforts to guide the market toward this balanced trajectory without much success.
