Quebec Federation of Real Estate Boards

Quebec Federation of Real Estate Boards

October 19, 2010 08:30 ET

Sales Decreased But Prices Increased in the Montréal Area in the Third Quarter of 2010

ILE-DES-SŒURS, QUEBEC--(Marketwire - Oct. 19, 2010) - Sales in the Montréal Metropolitan Area decreased by 19 per cent in the third quarter of 2010 compared to the same period last year, according to the Greater Montréal Real Estate Board's (GMREB) provincial MLS® system.

"Despite this decrease in sales, it is still a seller's market in the Montréal area," said Diane Ménard, Vice-President of the Board of Directors of the GMREB and spokesperson for the Québec Federation of Real Estate Boards (QFREB) for the Montréal area. "This can be explained, among other reasons, by a decrease in the supply of properties for sale, which fell for a fifth consecutive quarter in the third quarter of 2010. The decrease in inventory occurred at a slower pace compared to the previous quarters and this situation, coupled with a decrease in demand, suggests that the market will become balanced in the coming months," she added.

Because market conditions favoured sellers, property prices continued to increase in the Montréal area in the third quarter of the year. The median price of single-family homes increased by 5 per cent compared to the same period last year to reach $255,000. The median price of condominiums increased by 9 per cent to reach $218,000, while that of plexes increased by 11 per cent to reach $385,000.

In terms of sales by property category, condominiums posted the smallest decrease in sales at 14 per cent. Sales of single-family homes decreased by 21 per cent and plex sales fell by 20 per cent.
Geographically, the North Shore registered a 15 per cent decrease in sales in the third quarter of 2010 compared to the same period last year, the smallest decrease among the five areas of the Montréal region. Vaudreuil-Soulanges and the Island of Montréal were close behind with respective decreases of 16 and 18 per cent, while sales in Laval and on the South Shore decreased by 22 and 23 per cent, respectively.

Third-Quarter Slowdown Across the Province

There were 16,005 sales transactions across Québec between July and September 2010, a 13 per cent decrease compared to the third quarter of 2009.

"It's important to remember that the market was more active than usual at this time last year, as we were coming out of the recession. It is therefore not surprising that the market was down this year," said Claude Charron, President of the Board of Directors of the QFREB. "Furthermore, since the start of the year, province-wide sales have increased by 5 per cent, which shows that the market is still performing well," he added.

In terms of property categories, single-family homes and condominiums both registered a 13 per cent decrease in sales in the third quarter of 2010 compared to the third quarter of 2009, while plex sales fell by 15 per cent.

Despite the decrease in sales, property prices continued to climb in the province. The median price of single-family homes increased by 4 per cent to reach $201,100. The median price of condominiums increased by 8 per cent to reach $200,000, while that of plexes increased by 1 per cent to reach $296,000.

"Price growth slowed somewhat in the province in the third quarter but this is not surprising as supply and demand are slowly becoming rebalanced," said Claude Charron. "At the start of the year, the market was very active and there were fewer properties available on the market. In recent months, the demand for properties has decreased and supply increased between July and September, the first increase in four quarters. This rebalancing of the market is therefore moderating price increases," he added.

More Information on centris.ca™

For more information, including quarterly statistics for the province of Québec, as well as its municipalities and regions, visit centris.ca™, Québec's real estate industry website.

About the Greater Montréal Real Estate Board

The Greater Montréal Real Estate Board is a non-profit organization that brings together most of the real estate brokers who work in the Greater Montréal area. With more than 10,500 members, it is the second largest board in Canada. Its mission is to actively promote and protect its members' professional and business interests in order for them to successfully meet their business objectives and maintain their predominance in the real estate industry.

About the Québec Federation of Real Estate Boards

The Québec Federation of Real Estate Boards is a non-profit organization composed of Québec's 12 real estate boards as associate members and the 15,000 real estate brokers who are affiliated members. Its mission is to promote and protect the interests of Québec's real estate industry so that the boards and their members can successfully meet their business objectives.

For more information on MLS® statistics for each of the province's regions, don't miss the upcoming publication of the MLS® Barometer.

Contact Information

  • Quebec Federation of Real Estate Boards
    Chantal de Repentigny, Assistant Director
    Communications, Industry Relations and Legal Affairs
    514-762-2440, extension 130
    E-mail: chantal.derepentigny@gmreb.qc.ca