Residential sales fell by 36% in the census metropolitan area (CMA) of Montreal in January 2023, compared to the same period last year, a slowdown that was also noted in Quebec.
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The Montreal CMA recorded 1,791 residential sales in January 2023 compared to 2,816 sales made during the same month last year. According to data from the Association professionnelle des courtiers immobiliers du Québec (APCIQ), we have to go back to 2009 for such a low level of sales to be observed in January.
Registrations also increased by 65% in January 2023 compared to January 2022.
“With a level of activity that is approaching a historic low for the month of January, the inventory of properties for sale tends to be replenished more quickly in the Montreal CMA. This dynamic is in line with the trend of the last six months. In addition to the full impact of the rise in interest rates on the financial capacity of first-time buyers, it is above all a wait-and-see attitude and caution that are generally in order, despite the decline in prices. The latent demand to buy a property is nevertheless still very present,” noted Charles Brant, director of the APCIQ’s market analysis department.
The largest drop in sales in the Montreal CMA was observed in Laval (171 sales) and on the Island of Montreal (644) with a drop of -38% and -39%, respectively.
The declines were the least significant in the Vaudreuil-Soulanges (79 sales), Montreal North Shore (441 sales) and Saint-Jean-sur-Richelieu (51 sales) sectors, with respectively -26%, -33% and -35%.
The South Shore of Montreal, with 405 transactions, saw a decrease in sales comparable to that of the entire CMA (-36%).
Plexes and condominiums suffered the greatest declines, with respective drops of 52% and 38% compared to January 2022. Sales of single-family homes fell by 31%.
Median prices for single-family homes fell 7% year-on-year to $500,000. Same scenario for plexes with a drop of 6% for a median price of $675,000, and condominiums with a decrease of 3% ($370,000).
A slowdown also in Quebec
The number of sales fell by 24% in January 2023 compared to the same month in 2022 in the Québec City CMA, while listings increased by 18%.
The northern periphery of Quebec recorded the largest drop (-34%), followed by the South Shore of Quebec (-33%).
These major sectors recorded 59 and 97 sales respectively for the period of January 2023. In the Quebec City agglomeration, activity reached 365 sales in January, a decline of -20% compared to January 2022.
As for median prices, they remained similar from one year to the next for single-family homes (i.e. $325,000), while they increased by 9% ($235,000) for condominiums and decreased 5% (330,000) for plexes.