Real Estate Market Update
The number of sales for single family homes on the island of Montreal dropped off for the month of August compared to the same month last year. 329 sales compared to 544 in 2020. This is down 39% – the lowest number of sales for August over the last 5 years.
The median price also dipped down to January 2021 levels hitting $660,000, down from a peak in June of $742,000. That's a drop of 11% from June of this year but still up 5% from August of 2020.
Active listings were steady at 1,092, which is still extremely low. In June there were 1,099 active listings and in August of 2020 there were 1,473. That’s a 25% decrease compared to last August.
Condo sales in August were the lowest compared to any other month so far this year, with only 747 transactions taking place. Condo sales are also down compared to last year when we had 996 in the month of August. This represents a drop of 25% and a return to more steady, pre-COVID levels.
The median price of a condo in Montreal was up 3%. It jumped from $416,000 in July to $430,000 in August. Compare this to the $383,000 for August of last year, and we’ve seen a median price increase of 12%.
We suspect this continued strength in the condo sector was due in large part to the overheated single-family market, which caused affordability issues for many buyers, thereby injecting more demand into the condo market.
Active listings were down slightly from July, with 3,281 condos on the market compared to 3,417 in July. This is the lowest it's been all year and was down 18% compared to August of last year. This decrease in supply is what pushed prices up.
Affordability issues are pushing many buyers out of the single-family market along with the new stress test restrictions, and we suspect August activity dropped off due to many buyers hitting the pause button and taking advantage of a long overdue summer vacation.
The September stats will be very telling. Are we starting to see things soften out or was the slow down just seasonal? Be on the lookout for next month’s Q3 deep dive.
If you would like the stats for your neck of the woods just reach out to us and we’d be happy to send them to you. Call 514-700-2604 or send an email to email@example.com. You should also consider joining the Homeowners Advisory Club. It’s the first real estate concierge service designed to help you protect and maximize the value of your home over time.