According to our latest forecast, the Montreal real estate market is expected to cool down in 2023. So if you’re considering buying a home soon, it’s better to start doing your research.
This post will be your go-to guide for everything you need to know about the Montreal real estate market. I’ll keep you up-to-date on the latest market trends, provide helpful tips on buying a home, and more.
During the pandemic, Montreal’s real estate market prices accelerated as the effects of the pandemic disappeared and interest rates rose; the real estate is expected to fall.
Here is a brief outlook of the current real estate market in Montreal.
- The average price of a home in Montreal is currently $564,683, with a 4% increase from last year.
- The average price of a condo in Montreal is currently $385,000, with a 3% increase from last year.
- The average price of a detached home in Montreal is currently $525,000, with 5% from last year.
- There is currently an oversupply of condos on the market in Montreal, which is keeping prices from increasing as rapidly as they otherwise would. However, this is not expected to last more than a few years, after which prices are predicted to rise more quickly.
- The rental market in Montreal is also strong, with the average rent for a one-bedroom apartment currently at $1,450 per month, a 7% increase from last year.
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The current state of the Montreal real estate market
As of 2022, the Montreal real estate market is cooling down after years of strong price growth during the pandemic as the government slashed the interest rate to near zero in 2020 to boost the economy.
The average home price in Greater Montreal has stabilized at around $560,000, which is still a very affordable price compared to other major cities in Canada.
However, we see some variation in prices depending on the type of housing. For example, detached homes are still fetching high prices (around $525,000 on average), while apartment prices have come down slightly.
Looking ahead to the next few years, we predict that the Montreal real estate market will continue to cool down as we enter into a period of economic uncertainty.
This means that prices are not likely to increase much (if at all) during this time. However, there are still good opportunities to buy property in Montreal as there is a large selection of properties available for sale at low prices.
How the market has changed in recent years
Over the past few years, the Montreal real estate market has undergone a number of changes. Before the pandemic, the city was known for its reasonable housing and less demand, but in recent years, prices have been on the rise and inventory has become constrained.
During the pandemic, the government reduced the interest rate to stimulate the economy, which resulted in the growth of the real estate sector, and the market became increasingly competitive, particularly for buyers looking to purchase their first home. However, things have been getting back to normal, and property prices have stabilized a lot.
As a result of these changes, it is important for buyers to be aware of how the market has changed in order to be best prepared when entering the market.
What to expect in the coming years
The Montreal real estate market is forecast to see a decline of up to 23%, as per economists. The current housing market is expected to “recalibrate,” or in other words, adjust and readjust by early next year.
This primarily means that in the regions of B.C and Ontario, there will be a decrease and decline in the prices of homes. Whereas in Quebec, Alberta and the Atlantic Region, the decline will be more modest and not as steep.
There are a number of factors that are driving this decline, including economic conditions, high-interest rates, high inflation, government policies and a surplus of new housing projects and condos.
This combination is expected to continue to push prices downward, although at a slower pace than we’ve seen in recent years. However, “the price can rise again if the interest rate starts to fall by the end of 2023 “ says ALP PEREZ – Montreal Real Estate Agent (https://realtormontreal.ca/).
If you’re thinking about buying a home in Montreal, it’s important to be aware of these trends so you can budget accordingly. Be sure to consult with a real estate agent to get the most up-to-date information and advice on what to expect in the coming years.
Trends affecting the Montreal real estate market
There are several trends that are affecting the Montreal real estate market, and these must be considered when making any investment decisions.
The first trend is the overall economic conditions in Montreal. The city’s economy has been underperforming in recent years, with unemployment remaining high and wages growth stagnating. This has led to fewer people buying homes and has put downward pressure on prices. The current employment rate in Quebec is 4.50%, compared to 4.10% last month.
The second trend is the rising interest rate. The National Bank of Canada raised the interest rate multiple times , which is expected to increase further in 2023 with increasing inflation.
The third trend is the increased demand for rental properties. With more people struggling to get on the property ladder, there has been a surge in demand for rental properties in Quebec. This is particularly evident in the student population, as many young people cannot afford to buy their own homes.
All of these trends must be taken into account when considering an investment in the Montreal real estate market. Those who are able to identify emerging trends and position themselves accordingly stand to make significant profits in the years ahead.
Advice for buyers and sellers in the Montreal real estate market
If you’re thinking of buying or selling a home in the Montreal area, you need to be aware of the trends shaping the real estate market. Buyers and sellers alike need to know what to expect in the coming months and years, so they can make informed decisions about when to buy or sell.
The Montreal real estate market has been on an upward trend for some time now, but that doesn’t mean there isn’t potential for corrections along the way.
Here’s what you need to know about the Montreal real estate market forecast for 2019-2023.
- The average price of a home in Montreal is forecast to reach $500,000 by 2023.
- The number of homes sold is expected to decline to rise, reaching a peak of approximately 2,681 home sales in 2022.
- The tightness of the housing market is expected to ease slightly over the next few years as more homes are built and come onto the market.
- Mortgage rates are expected to rise slightly over the next few years,
If you’re thinking of buying or selling a home in Montreal, it’s important to be aware of these trends so you can make the best decision for your situation.