While spring ended on an optimistic note for sellers and buyers due to an upturn in transactional activity, summer got off to a slow start with falling demand and rising supply. Here is our complete analysis of Montreal real estate in June 2023.
1. Price stabilization
After a period of sustained growth, the Montreal real estate market is showing signs of stabilizing prices in June 2023. Although they remain high in central neighborhoods, the rise seems to be slowing down. This situation can be attributed to a slight increase in registrations.
2. Sustained demand for family properties
Single-detached homes and townhouses continue to be highly sought after in Montreal. Families want an accommodation of a considerable size with outdoor spaces, which increases demand in residential areas further from the city centre. The value of these properties remains stable, even elevating slightly. However, the Professional Association of Quebec Real Estate Brokers (APCIQ) lists that there were 1,899 sales of single-family homes in June 2023, a drop of 8% compared to the same date last year.
3. Attractiveness of developing neighborhoods
Griffintown, Rosemont and Villeray continue to draw buyers’ attention in June 2023. These areas offer a combination of modern conveniences, more affordable prices, and long-term growth prospects. Investors and developers are also attracted to these neighborhoods because of their appealing rental yield potential.
4. Situation of condominiums
Condos are experiencing a contrasting evolution. While they sustain strong demand and stable prices, others face challenges. Increased competition in the rental market may impact co-ownership apartments used for investment purposes, causing a slight decline. However, well located, and well-maintained properties continue to attract buyers looking for a real estate option that is more practical and more affordable than a house.
5. Short-term outlook
The short-term outlook remains positive. The city continues to welcome residents from all over the world thanks to its quality of life, its economic dynamism, and its cultural diversity. In addition, immigration still plays a major role in significantly increasing demand. However, it is important to note that external factors such as interest rates and government policies can influence it and prices in the future. The Bank of Canada has also announced a new key rate hike, which will rise to 5% on July 12.
In conclusion, the Montreal real estate market is showing signs of stabilization, which provides some predictability for buyers. The forecast remains positive for the time being, but it is essential to closely monitor economic developments and amendment of laws related to housing to anticipate possible changes. You want to know more? Do not hesitate to contact us at 514.975.1133.
