Greater Montreal Real Estate Board

Greater Montreal Real Estate Board

February 09, 2011 09:00 ET

Slow Start to the Montreal Area Real Estate Market

MLS® Residential Statistics for the Montreal Metropolitan Area

ÎLE-DES-SŒURS, QUEBEC--(Marketwire - Feb. 9, 2011) - There were 2,477 MLS® sales transactions in the Montréal Metropolitan Area in January 2011, a 10 per cent decrease compared to January 2010, according to the Greater Montréal Real Estate Board (GMREB). Despite a decrease in sales, prices continued their upward trend.

"It's important to remember that in 2010, the year started off strong due to the anticipated increase in mortgage interest rates. In that way, it's no surprise that January 2011 sales are down compared to January 2010," said Diane Ménard, Vice-President of the GMREB Board of Directors. "We're predicting a slight decrease in residential sales in 2011, which is even more reason we're not surprised by January's sales," she added.

In terms of prices, they continued to increase in January 2011. Both single-family homes and plexes registered a 7 per cent increase in median price, reaching $252,000 and $390,000, respectively. The median price of condominiums posted a more modest increase of 4 per cent to reach $210,000.

MLS®Residential Statistics
Montréal Metropolitan Area
January 2011 versus January 2010
 
  Variation  
Active listings 23,582 +13 %
New listings 7,652 +11 %
Total sales 2,477 -10 %
  Single-family 1,448 -11 %
  Condominiums 782 -8 %
  Plexes (2 to 5 dwellings) 246 -9 %
Volume of sales $710,012,816 -6 %
Median price      
  Single-family $252,000 +7 %
  Condominiums $210,000 +4 %
  Plexes (2 to 5 dwellings) $390,000 +7 %
Source: Greater Montréal Real Estate Board by Centris®  

"When we look at property prices elsewhere in Canada, we see that Montréal is still one of the country's most affordable large cities. For example, in Calgary, a city that also publishes median prices, the median price of single-family homes was $390,000, which is 55 per cent higher than Montréal's median price of $252,000," said Ms. Ménard.

All property categories posted a decrease in sales in January 2011 in the Montréal area. Sales of single-family homes decreased by 11 per cent compared to January 2010, sales of condominiums decreased by 8 per cent and plex sales fell by 9 per cent. Even though the 782 condominiums sold in January 2011 did not surpass the sales level of January 2010, this was still the second best January on record for condominium sales, which demonstrates the growing demand for this type of property.

Geographically, the Island of Montréal and Laval both posted a slight 3 per cent decrease in sales in January 2011 compared to January 2010. Sales in the Vaudreuil-Soulanges area decreased by 7 per cent, while sales on the North Shore fell by 11 per cent. Finally, the South Shore registered a sharper decrease in real estate activity, as sales fell by 22 per cent.

As at January 31, 2011, the number of active listings on the MLS® system increased by 13 per cent in comparison with the same date last year.

"If you take into consideration that sales have decreased and listings have increased, it shows that market conditions are softening in Montréal. Even though the market continues to favour sellers, we can see that we're slowly moving towards a balanced market," said Diane Ménard.

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 close to 11,000 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.

For January 2011 statistics charts, click here (http://communications.centris.ca/Tableaux/2011/Tableaux_Communiques_CIGM_2011M01_ENG.pdf).

Important Note

The Greater Montréal Real Estate Board publishes its MLS® sales statistics by Montréal Metropolitan Area territory, as defined by Statistics Canada during the last census. The list of municipalities that make up this territory is available at www.statcan.ca.

In addition, the Greater Montréal Real Estate Board uses the median price to measure the evolution of property prices. The median price is the middle price, in other words, half of the transactions had a lower price and the other half had a higher price.

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