Montreal Housing Market: Trends and Analysis - October 2023

Montreal Real Estate in October 2023: Navigating Through Market Subtleties

In the realm of real estate, the pulse of the market is as dynamic as the seasons, and Montreal's housing landscape this October was no exception. The Quebec Professional Association of Real Estate Brokers (QPAREB) has freshly laid out the stats, painting a picture of cautious activity and a market that, surprisingly, still favors those with the 'Sold' signs at the ready.

Anemic Activity Meets Pre-Pandemic Listings

With 2,675 residential sales recorded for October, there's been a modest dip by 2 percent from last year. These numbers don't just tell a story of a slow month; they mark the second-lowest transactional activity for this season since the turn of the millennium. A clear signal that the market, while not stalling, is taking a deep breath.

Latent Interest Versus Economic Realities

The buzz in the market suggests buyers haven't vanished—they're just biding their time. The mix of a slowing economy and the challenge of saving enough in a high-cost landscape has prospective buyers hitting the pause button. Charles Brant of QPAREB sheds light on this, hinting at a cautious approach due to increased borrowing costs and the erosion of household buying power.

Fixed Interest Rates: The New Hurdle

With fixed rates soaring above 6 percent for short-term mortgages, the doorway to loan qualification with conventional lenders has narrowed. Even the Bank of Canada's halt on key rate hikes hasn't provided the anticipated boost in demand, leaving the market somewhat unstimulated.

October's Mixed Bag: Geographical Disparities

A closer look at the regions within the Montreal CMA shows a tale of two cities: the Island of Montreal and the South Shore enjoyed sales upticks of 7 and 8 percent, respectively, while the North Shore, Laval, Vaudreuil-Soulanges, and Saint-Jean-sur-Richelieu saw downturns ranging from 12 to 30 percent.

The Market Splits: Property Category Variances

The divide continues when breaking down by property type. Single-family homes slid down by 6 percent in sales, yet condos held steady, and small income properties surged by 10 percent.

More Listings, More Time, More Money

Listings have bloomed by 12 percent since last year, hitting numbers not seen since summer 2019. The clock ticks longer for sellers, with properties sitting for a few more days than they did a year ago. And while sellers wait longer, they're also fetching higher median prices across all property types.

A Closer Look at Median Prices

The median prices have nudged upwards annually—single-family homes by 7 percent to $545,000, plexes by 5 percent to $735,000, and condos by a modest 3 percent to $390,000. Month-over-month, the stability remains with a slight softening for homes and condos, but an uptick for income properties.

Varied Growth Across the Montreal CMA

Yearly price changes vary significantly by area, with single-family homes seeing a mix of slight decreases in some areas and up to a 10 percent hike in others. The diverse performance indicates a market that's anything but uniform, reflecting the unique pulse of each neighborhood.

The Road Ahead

As Montreal navigates this complex market landscape, the insights point to a time of watchful waiting for buyers and strategic pricing for sellers. It's clear that despite the current pressures, the Montreal CMA real estate market retains its resilience and its unique opportunities for those ready to make a move.