Montreal Real Estate Market Outlook 2020
Thursday, December 3, 2020
While November may have brought in some cooler temperatures ❄️and had us packing up the patio furniture, our West Island home buyers didn’t seem to have gotten the memo. 🤨 Instead of the traditional cool off that we normally see as we approach Christmas, the market continues to ramp up in the single family sector with the 𝐧𝐮𝐦𝐛𝐞𝐫 𝐨𝐟 𝐬𝐚𝐥𝐞𝐬 𝐧𝐨𝐰 𝐮𝐩 𝟔% 𝐲𝐞𝐚𝐫-𝐭𝐨-𝐝𝐚𝐭𝐞 compared to last year and the m𝐞𝐝𝐢𝐚𝐧 𝐩𝐫𝐢𝐜𝐞 𝐨𝐟 𝐚 𝐬𝐢𝐧𝐠𝐥𝐞 𝐟𝐚𝐦𝐢𝐥𝐲 𝐡𝐨𝐦𝐞 𝐨𝐧 𝐭𝐡𝐞 𝗪𝐞𝐬𝐭 𝐈𝐬𝐥𝐚𝐧𝐝 𝐫𝐢𝐬𝐢𝐧𝐠 𝐛𝐲 𝟏𝟓%. With 𝐢𝐧𝐯𝐞𝐧𝐭𝐨𝐫𝐲 𝐜𝐨𝐧𝐭𝐢𝐧𝐮𝐢𝐧𝐠 𝐭𝐨 𝐟𝐚𝐥𝐥 (down 39% in November 2020 vs November 2019) and very strong buyer confidence propped up by interest rates around 1.8% for a 5 year term, we continued to see fierce competition among buyers in the under $1,000,000 price ranges. 𝐇𝐢𝐠𝐡-𝐞𝐧𝐝 𝐫𝐞𝐚𝐥 𝐞𝐬𝐭𝐚𝐭𝐞 𝐚𝐥𝐬𝐨 𝐭𝐨𝐨𝐤 𝐨𝐟𝐟 in the West Island (and Montreal as a whole) with the number of sales over $1,000,000 jumping 77% compared to 2019 and even the over $2,000,000 market tripling in the number of sales. We are seeing many homeowners decide to invest more heavily in real estate and either take on major home renovations, add pools and gyms, buy an investment property or move up to luxury priced, larger homes. The condo market began to soften with year over year sales down 11%. Inventory has been rising since the pandemic with the 𝐧𝐮𝐦𝐛𝐞𝐫 𝐨𝐟 𝐜𝐨𝐧𝐝𝐨𝐬 𝐨𝐧 𝐭𝐡𝐞 𝐦𝐚𝐫𝐤𝐞𝐭 𝐮𝐩 𝟑𝟎% 𝐜𝐨𝐦𝐩𝐚𝐫𝐞𝐝 𝐭𝐨 𝐍𝐨𝐯𝐞𝐦𝐛𝐞𝐫 𝟐𝟎𝟏𝟗 however prices are still on the rise with 𝐦𝐞𝐝𝐢𝐚𝐧 𝐩𝐫𝐢𝐜𝐞 𝐮𝐩 𝟏𝟒% year to date compared to the same period last year. We predict that interest rates will remain low for the foreseeable future and that we won’t see enough inventory hit the market to meet demand, so 𝐥𝐨𝐨𝐤 𝐟𝐨𝐫 𝐮𝐩𝐰𝐚𝐫𝐝 𝐩𝐫𝐞𝐬𝐬𝐮𝐫𝐞 𝐨𝐧 𝐩𝐫𝐢𝐜𝐞𝐬 to continue for the foreseeable future..