NEWSLETTER Febuary 2023

YEAR 2023 STARTS WITH CONTRASTS

The statistics compiled according to the provincial database Centris for the month of January 2023, show a 36% decrease in property sales compared to the same period last year. Low sales continue to encourage the accumulation of properties on the market, especially for single-family homes. Consumers are cautious with reasons, despite the decline in prices. This decline was 7% for the median price of single-family homes, 6 % for plexes of 2 to 5 units and 3% for condominiums compared to the same period in 2022.Indeed, residential sales in the Greater Montreal Area amounted to 1,791 in January 2023. This is a significant decrease of 1,025 transactions compared to the same period last year which account for 36%. We have to go back to 2009 for such a low level of sales to be observed in January. Source APCIQ

With a level of activity approaching a historic low for the month of January, the inventory of properties for sale tends to rebuild more quickly in the Greater Montreal area. With the accumulation of properties on the market, active listings saw a marked increase, up 65% from January 2022. Thus, 15,020 registrations were listed in the Greater Montréal area in January 2023. This rise is supported by an increase in listings in all property categories. On the other hand, the single-family home class stands out with an even larger increase (89%). The inventory of available properties is thus slightly higher than the pre-pandemic level of January 2020.

All three property categories in the greater Montreal area recorded a decline in their median price compared to January 2022. Condominiums, with a median price of $370,000, saw the smallest decline (-3 per cent compared to the same period last year). Small income properties and single-family homes follow with decreases of -6% and -7%, respectively. Median prices were $675,000 and $500,000.
On a monthly basis, the decrease in the median price between December 2022 and January 2023 is less marked, between -1% and -2% or between -$5,000 and -$15,000. The median price of condominiums was the most stable, with a -1% decrease. For their part, plexes and single-family homes both recorded a decline of -2% compared to the previous month. How much is worth your property now, ask for a free Home Evaluation trough this link.

After a final rate hike in January, the Bank of Canada has clearly hinted at the end of monetary policy tightening. This announcement, combined with a context where market conditions tend to favour sellers less, could restore buyers’ confidence in their property acquisition project. It is therefore a question of putting in place elements favorable to a stabilization of activity in the spring in the Montreal region, all supported by the emergence of more opportunities. It remains to be seen what impact will be on transactional activity of the entry into force, at the beginning of the year, of new legislation concerning the prohibition of foreign investors from acquiring properties in major Quebec cities. To stay abreast of the latest developments in the real estate field, subscribe to our Monthly Newsletter on this Contact Us link.