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In July, the Montreal housing market experienced a significant slowdown, with home sales plummeting by 10 per cent compared to the same month last year. The Quebec Professional Association of Real Estate Brokers reported that 3,338 residential properties were sold in the Montreal census metropolitan area, down from 3,709 in July 2022. This decline reflects a broader cooling trend across the province’s real estate sector.
Sales Decline Amidst Rising Prices
Despite the decrease in sales volume, property prices in the region have continued to rise. The median price for plexes saw the most notable increase, climbing by 6.1 per cent to reach $865,000. Single-family homes also saw a rise, with their median price increasing by four per cent to $650,000. Condominiums experienced a more modest uptick, with their median price rising 1.5 per cent to $431,500. These trends indicate that while fewer homes are being sold, those that are on the market are commanding higher prices.
New Listings and Inventory Growth
July saw an increase in new listings, with a total of 5,260 properties hitting the market, representing a 4.1 per cent rise from the previous year. This influx of new listings has contributed to a substantial increase in overall inventory, which grew by 16.6 per cent to reach 19,790 units available for sale. The increase in inventory may provide potential buyers with more options, although the rising prices could still pose a barrier to entry for many.
Market Trends and Consumer Behaviour
The current trends in Montreal’s housing market reflect a complex interplay of factors. While rising prices can indicate a robust demand for housing, the decline in sales suggests that buyers may be becoming increasingly cautious, possibly due to economic uncertainties or affordability concerns. The rise in inventory could also signify a shift in the market, as sellers respond to changing conditions by listing their properties, hoping to capitalise on the higher prices.
Why it Matters
The cooling of the Montreal housing market is significant not only for potential buyers and sellers but also for the broader economy. As home sales decline and inventory rises, it raises questions about the sustainability of the current price levels. For many residents, this trend could impact housing affordability, making it essential for policymakers to monitor and respond to these shifts. Understanding the dynamics of this market will be crucial for both consumers and stakeholders as they navigate the evolving landscape of real estate in Quebec.
