The rise in interest rates had its effect on the real estate market, which continues to slow down steadily with a marked drop of 20% in the number of transactions in August compared to the same period in 2021.
In the census metropolitan area (CMA) of Montreal, 2,681 residential transactions were recorded, once morest 3,347 sales a year earlier, while the number of listings available for sale jumped 37%, to 13,715. , according to data from the Professional Association of Quebec Real Estate Brokers.
The decline in sales was 34% in Saint-Jean-sur-Richelieu and 31% on the island of Montreal, while the North Shore and the South Shore experienced mixed fortunes with a 10% drop and 3% respectively.
The trend observed in July is confirmed once more a month later with a greater slowdown in plex sales, which fell from 385 to 248, while condominiums and single-family homes fell by 22% and 14%.
The APCIQ notes that the median price of single-family homes rose 5% year over year to $525,000, while that of condominiums and plexes reached $385,000 and $697,000. %, up 3%.
“The magnitude of the rise in mortgage interest rates is thus beginning to be reflected more incisively, with transaction activity slowing further and an accumulation of the inventory of properties offered for sale,” indicated Charles Brant, director of the APCIQ’s Market Analysis Department.
“The process of market rebalancing is therefore underway, although in a much more gradual way than other Canadian metropolises, manifesting itself in a slippage in the ratio of sales to new listings and a rapid decline in the proportion of closed property sales. following a process of one-upmanship”, analyzed Mr. Brant.