Third Quarter of 2013
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Barometer QFREB Residential Market Montréal Metropolitan Area Highlights Residential Sales Start to Increase Again in Third Quarter of 2013 Northern Suburbs Going Against the Current Significant Increase in Supply of Properties Prices Stabilize for Condominiums and Plexes ® Analysis Residential Sales Start to Increase Again in Third Quarter of 2013 After four consecutive and relatively large quarterly decreases in in supply was observed in all five main areas of the CMA, at a sales following the entry into force of more restrictive mortgage similar pace or even a more sustained pace than the previous rules1, the number of residential transactions in the Montréal quarter. Census Metropolitan Area (CMA) finally began to rebound in the third quarter of 2013. According to the real estate brokers’ This increase in supply was observed in all five main provincial database, there were 7,320 residential sales transactions concluded through the Centris® system in the Montréal CMA in the areas of the CMA, at a similar pace or even a more third quarter of the year, a 2 per cent increase compared to the sustained pace than the previous quarter. third quarter of last year. However, this increase was not enough to offset the 8 per cent decrease in sales that occurred in the third Laval registered the largest increase in the number of active listings, quarter of 2012. up 22 per cent compared to the third quarter of 2012. The North Shore once again registered the smallest increase, at 11 per cent. However, this increase in sales was not enough Finally, the Island of Montréal was the only main area of the CMA to offset the 8 per cent decrease in sales that occurred that saw its number of active listings increase at a slower pace than in the third quarter of 2012. in the previous quarter, even though the increase was still quite significant (+16 per cent). The solid performance of the Montréal area’s employment market In the third quarter of 2013, for the twelfth consecutive quarter, in the last year (42,300 jobs created) has undoubtedly contributed the supply of condominiums registered the largest increase. to the rebound of the real estate market in the CMA. It should be On average, close to 11,700 condominiums were for sale from July noted, however, that this increase in sales in the third quarter of to September 2013, a 21 per cent increase compared to the same 2013 was smaller than in other large urban centres in Canada2. period in 2012. Northern Suburbs Going Against the Current Prices Stabilize for Condominiums and Plexes Geographically, most areas of the CMA registered an increase Market conditions for single-family homes relaxed in the third in residential sales in the third quarter of the year. The South quarter of 2013, but remained balanced. The plex market also Shore posted the largest increase in sales, growing by 9 per cent remained balanced, while the condominium market favoured compared to the third quarter of 2012, followed by Vaudreuil- buyers throughout the Montréal CMA. Soulanges (+6 per cent) and the Island of Montréal (+4 per cent). In contrast, the northern suburbs, meaning the North Shore and These current market conditions have resulted in Laval, registered respective decreases of 2 and 8 per cent. This relatively stable prices. was the fourth consecutive drop in sales on the North Shore, and the fifth consecutive drop in Laval. It should be noted, however, that in both of these areas, the decrease in sales registered in the These current market conditions have resulted in relatively stable third quarter of 2013 was much smaller than those registered in prices. For the entire Montréal area, the median price of single- previous quarters. family homes increased by 2 per cent in the third quarter of 2013, to reach $282,500. The median price of condominiums remained The South Shore posted the largest increase in sales, stable for a third consecutive quarter at $229,658. Finally, after growing by 9 per cent compared to the third quarter registering the largest increase in the two previous quarters, the of 2012. median price of plexes also remained stable at the same level as the third quarter of 2012 ($425,000). Three North Shore areas did manage to post an increase in sales in In the five main areas of the CMA, the largest increase in the the third quarter of the year: Blainville (200 sales) and Mascouche median price of single-family homes was in Vaudreuil-Soulanges (108 sales) both registered a 3 per cent increase, and Repentigny (+3 per cent), followed by the South Shore and North Shore (207 sales) registered a 4 per cent increase. Again, these increases (+2 per cent each), and Laval (+1 per cent). Only the Island were not enough to offset the decreases that occurred in the third of Montréal registered a slight decrease in the median price of quarter of 2012. On the Island of Montréal, the Ville-Marie area single-family homes, falling by 2 per cent in the third quarter of the turned in a solid performance as sales rose by 28 per cent (295 year, the first quarterly decrease since at least the early 2000s. transactions), while on the South Shore, the Boucherville/Saint- However, the vast majority of areas that make up the Island Bruno area (155 transactions) registered a 42 per cent increase in of Montréal registered an increase in the median price of single- sales, the highest third quarter sales level since 2009. family homes. These include Saint-Laurent (+18 per cent), Anjou/ Significant Increase in Supply of Properties Saint-Léonard (+13 per cent) and Côte-des-Neiges/Notre-Dame- de-Grâce/Côte-Saint-Luc (+7 per cent), which registered some of The number of residential properties for sale in the Montréal CMA the largest increases. continued to climb for a twelfth consecutive quarter, rising by 15 per cent compared to the third quarter of last year. This increase The Island of Montréal also experienced a decrease in the median price of condominiums (-3 per cent). In contrast, the largest 1 This change in mortgage rules took place in the summer of 2012 and limits the maximum increase in this area was in Laval (+4 per cent). amortization period for new insured mortgages to 25 years, rather than 30 years, making it more difficult for first-time buyers to qualify. 2 In comparison, sales in the areas of Toronto, Calgary and Vancouver increased by 22, 23 and 40 per cent, respectively, in the third quarter of 2013. 1 Third Quarter Economic Indicators (1) Variation from previous quarter Note : Green arrows indicate good news and red arrows indicate bad news. (2) Variation from the same quarter one year ago The arrows indicate stability. (3) Mortgage rate offered by Canada’s main banks (4) Measure used by the Bank of Canada to guide its decisions (5) Proportion of people who responded “yes” to this question (6) Seasonally adjusted (7) The total also includes co-operative housing Sources: Statistics Canada, Conference Board of Canada and CMHC Monthly Evolution of Mortgage Rates – Five-Year Term % Source: Statistics Canada 2 Map Boundary of the Montréal Census Metropolitan Area*(CMA) Click on the name of the desired large area in order to access the map and related data (1) *Statistics Canada definition, 2011 census (1) - No Centris® data available for Kanesatake and Kahnawake ©2013 Québec Federation of Real Estate Boards. All rights reserved. This map is protected by copyright and is the property of the Québec Federation of Real Estate Boards. Any use of this map, in whole or in part, directly or indirectly, is expressly prohibited, unless prior written authorization is obtained from the copyright owner. 3 List of Areas Montréal Metropolitan Area Click on the desired area in order to access the map and related data Island of Montréal North Shore Area 1 : West Isalnd South Area 23 : West of the North Shore Baie-d'Urfé, Beaconsfield, Dorval, L'Île-Dorval, Deux-Montagnes, Oka, Pointe-Calumet, Sainte-Marthe-sur-le-Lac, Pointe-Claire, Sainte-Anne-de-Bellevue, Senneville Saint-Eustache, Saint-Joseph-du-Lac, Saint-Placide Area 2 : West Island North Area 24 : Mirabel Kirkland, L'Île-Bizard/Sainte-Geneviève, Pierrefonds-Roxboro, Mirabel Dollard-des-Ormeaux Area 25 : Blainville Area 3 : Lachine/LaSalle Blainville, Lorraine, Rosemère Lachine (Montréal), LaSalle (Montréal) Area 26 : Boisbriand/Sainte-Thérèse Area 4 : South-West Boisbriand, Sainte-Thérèse Le Sud-Ouest (Montréal), Verdun (Montréal) Area 27 : Terrebonne Area 5 : Saint-Laurent Bois-des-Filion, Terrebonne, Lachenaie, Sainte-Anne-des-Plaines, Saint-Laurent (Montréal) La Plaine Area 6 : Ahuntsic-Cartierville Area 28 : Mascouche Ahuntsic-Cartierville (Montréal) Mascouche Area 7 : CDN/NDG/CSL Area 29 : Repentigny Côte-des-Neiges/Notre-Dame-de-Grâce (Montréal), Le Gardeur, Charlemagne, Repentigny Côte-Saint-Luc Area 30 : East of the North Shore Area 8 : Centre L'Assomption, Lavaltrie, Saint-Sulpice, L'Épiphanie (Paroisse), Hampstead, Montréal-Ouest, Mont-Royal, Outremont (Montréal), L'Épiphanie (Ville) Westmount Area 31 : Saint-Jérôme Area 9 : Nun’s Isalnd Gore, Saint-Colomban, Saint-Jérôme Île-des-Sœurs (Montréal) Area 10 : Ville-Marie Vaudreuil-Soulanges Ville-Marie (Montréal) Area 32 : Île-Perrot Area 11 : Le Plateau-Mont-Royal L'Île-Perrot, Notre-Dame-de-l'Île-Perrot, Pincourt, Le Plateau-Mont-Royal (Montréal) Terrasse-Vaudreuil Area 12 : Rosemont Area 33 : Vaudreuil-Dorion Rosemont/La Petite-Patrie (Montréal) L'Île-Cadieux, Vaudreuil-Dorion (sans Vaudreuil-Ouest), Area 13 : Villeray Vaudreuil-sur-le-Lac Villeray/Saint-Michel/Parc-Extension (Montréal) Area 34 : Soulanges