Montreal Real Estate Market in May 2023

Montreal Real Estate Market Trends

This early spring brings a sense of optimism in the Montreal real estate market. After surpassing the peak of fixed and variable mortgage rates, median property prices in the Montreal Census Metropolitan Area (CMA) are trading 5 to 8 percent below the high reached at the same time last year, according to Charles Brant, Director of Market Analysis at APCIQ. However, despite this downward price in the Montreal Real Estate Market trend, transaction activity was disappointing in April, which can be attributed to the inventory shortage in the market.

April highlights:

During April 2023, transaction activity slowed down in all major sectors of the Montreal CMA. Property sales decreased by 31 percent in Laval and 30 percent on the Island of Montreal. This decline in sales is observed across all property categories, although less markedly than in previous months. Small income properties were particularly affected by this decline.

Market analysis and inventory shortage:

In addition to the high price level, the inventory shortage poses a major challenge in the Montreal real estate market. In April, we witnessed a historic drop in new listings, indicating a lack of properties available for sale. Properties offering good value for money are particularly scarce and represent the majority of transactions in each property category, contributing to maintaining prices at a high level.

Market outlook and price increases:

Despite monthly fluctuations, the median price for each property category remains slightly lower than the previous year for the same month. On a consecutive monthly basis compared to March 2023, median prices for single-family homes and plexes experienced a slight increase of 1 percent, while condominium prices climbed by 2 percent. This upward price in the Montreal Real Estate market trend has persisted for three consecutive months for each property type.

Transactions and sales time:

The upward trend in active listings continues due to the low number of sales in the Montreal CMA. However, it is important to note that the average selling time for all three property categories is significantly higher than in April 2022, indicating a market normalization process. This is particularly notable for properties considered less desirable, still listed at prices considered too high in relation to what they offer and the market reality.

Source QPAREB