The high price of properties in Greater Montreal had an impact on the number of buyers, resulting in lower sales for the region during the month of April, contrary to what was observed in the region of Quebec.
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The census metropolitan area (CMA) of Montreal thus recorded the lowest level of sales for the month of April since 2017, with a decrease of 17% compared to the same period in 2021.
“Considering that 2017 refers to the year when activity was the most subdued for five years, this reversal is suggestive of a significant slowdown”, explained Wednesday by press release Charles Brant, director of the service of the Market analysis from the Professional Association of Quebec Real Estate Brokers (APCIQ).
The category of single-family residences suffered mainly from this decline due to the lack of supply on the market, but especially the price level which reduced the number of potential buyers.
“This category weighs heavily in the balance, as sales remain relatively strong for condominiums and plexes,” said Mr. Brant.
The biggest drop in sales was seen in Laval (-21%) and the North Shore (-20%), while the island of Montreal recorded a 17% drop compared to April 2021.
While all residential categories experienced declines in activity, median prices continued to rise. The upward trend, however, is expected to fade in the short term due to “weakening sales and a stabilization process in active listings.”
The median price of single-family homes thus reached $580,000 (+16%), that of condominiums was $410,000 (+15%) and small properties stood at $780,000 (+14%).
The situation is not the same in the Québec City CMA, where sales remained at high levels for the month of April, which caused the number of active listings to drop.
“A 17% increase in the median price was recorded there, unheard of since the Centris system for real estate brokers compiles market data,” noted Mr. Brant.
The difference between the two cities can be explained by the average price of a residence in Quebec, which is much lower than that of Montreal for equivalent average household income levels.
Residential sales still recorded a decline of 11% compared to April 2021, but remain at a historically high level with 963 sales. The slowdown was mainly seen in the Quebec agglomeration and the northern periphery (-13%).
The median price of condominiums particularly increased with a jump of 16% to reach $235,000. Single-family homes are at $345,000 (+10%) and small properties at $385,000 (+7%).
