Canadian real estate market has been headlining news for months now, but Montreal’s market seemed to be growing steadily without difficulties. The new Greater Montréal Real Estate Board’s report is clear: local property sellers currently have a serious advantage.
« The Greater Montreal Real Estate Board reported home sales increased in July for their 41st consecutive month, hitting an eight-year high for the month. The median single-family home price rose six percent compared to the same month a year ago to $336,250 — still much lower than in Canada’s biggest market of Toronto, where the average home price stood at $782,129 in July », says the Financial Post.
This increase can be explained by multiple factors. First, Montreal’s occupancy rate is really high, making affordable properties rare and, therefore, increasing the prices offered. New foreign buyers and a flourishing local economy also make for a very healthy real estate market.
«Montreal’s sizzling real estate market has spawned bidding wars, a common occurrence in recent years in the frenzied Toronto and Vancouver markets, but a rare phenomenon in Canada’s second-largest city », says Global News.
In such circumstances, property owners receive many interesting offers allowing them to choose the highest bid and, therefore, keeping buyers on the ropes. If Montreal’s real estate market currently favors sellers that literally get more than they asked for, it’s a whole different story for buyers finding themselves in a way more stressful experience, stuck in a market forcing them to make higher and higher bids for their dream home.
Sotheby’s International President & Chief Executive Officer, Brad Henderson, says to Global News: « That dynamic added to buyers’ frenzy and encouraged losing bidders to pay more in subsequent sales. »
Many experts agree that the situation will get worse before things get better (for buyers) with new residential real estate constructions in Montreal, an increase of interest rates and news listings.
The one thing we know for sure is that if you were thinking about selling your property, the timing could not be better. Don’t waste any more time! Get your share of Montreal’s thriving real estate market and contact the Genest & Marinacci, Real Estate Brokers‘ team to get your property appraised by a Sotheby’s expert.
Photo: Floriane Vita, Unsplash