Greater Montreal Real Estate Board

Greater Montreal Real Estate Board

August 22, 2006 09:55 ET

Greater Montreal Real Estate Board: Resale Market Still Just as Robust

MONTREAL, QUEBEC--(CCNMatthews - Aug. 22, 2006) - From April to June 2006, there were 11,292 resales of residential properties in the Montreal metropolitan area. This result was similar to the level of 11,282 sales of existing properties registered in the second quarter of 2005.

"There is no denying the housing market craze, and buyers do not seem to be overly concerned about the rise in interest rates. In general, the resale market therefore remains favourable to sellers," indicated Paul Cardinal, Senior Market Analyst at Canada Mortgage and Housing Corporation.

Single-family houses remained the most popular housing type, even though there was no increase in transactions in the second quarter. Out of the 11,292 transactions, 7,086 involved single-family houses. There were more sales of such homes than other housing types in all large zones of the metropolitan area, except on the Island of Montreal, where condominium transactions dominated. The average selling price of single-family homes reached $242,864, for an increase of 8 per cent over the second quarter of 2005.

Condominium resales posted a good gain this past second quarter, with 2,804 transactions, or 7 per cent more than during the second quarter of 2005. In fact, we can assert that it was the enthusiasm of buyers for condominiums that maintained the total volume of resales at an exceptional level. However, the condominium market is still on its way to becoming balanced again, as active S.I.A.®/MLS® listings are rising at a faster pace than sales. The average selling price of condominiums attained $202,802 in the second quarter, up by 8 per cent over the same period last year.

Plexes were the only housing type for which resales fell this past quarter. There were 1,402 plex transactions in the metropolitan area, or 10 per cent fewer than in the second quarter of 2005. Still, this segment remained a seller's market, and the average selling price registered the strongest increase (+11 per cent), reaching $317,565. Plexes therefore remained the most expensive housing type in the metropolitan area.

"The second quarter breathed new life into the resale market. In terms of the growth in prices, while the first quarter results were suggesting a soft landing for the market, the figures for the second quarter seem to be pointing to a new takeoff," said Michel Beausejour, FCA, Chief Executive Officer of the Greater Montreal Real Estate Board.

The results for the first half of the year suggest that 2006 will be much like 2005, in terms of the volume of resales. In the first six months of 2006, 22,490 transactions were registered on the S.I.A.®/MLS® network while, last year, during the same period, 22,134 sales had been recorded.

Contact Information

  • Canada Mortgage and Housing Corporation
    Paul Cardinal
    Senior Market Analyst
    (514) 283-8391
    pcardina@cmhc.ca
    or
    Greater Montreal Real Estate Board
    Chantal de Repentigny
    Assistant Director
    Communications, Industry Relations and Legal Affairs
    (514) 762-2181, ext. 130
    chantal.derepentigny@gmreb.qc.ca