The Quebec Professional Association of Real Estate Brokers (QPAREB) has recently unveiled the residential real estate market statistics for February 2024, showcasing a substantial recovery in the Montreal Census Metropolitan Area (CMA). With a total of 3,843 residential sales recorded in February, the market witnessed a dramatic 30% increase, translating to 888 more transactions compared to February 2023. This upswing, while still slightly below the historical average for this period, marks a significant turnaround for the Montreal real estate sector.
The resurgence in the Montreal resale market is attributed to a mix of demographic and economic factors, including sustained migratory flow into the metropolis post-pandemic and anticipations of interest rate cuts. Despite the Bank of Canada's current stance, the promise of future rate reductions has encouraged a surge in buyer activity. February 2024 stands out as a pivotal month, signaling a newfound optimism among both buyers and sellers. The increase in new listings, over 36% compared to February of the previous year, reflects homeowners' expectations for a forthcoming drop in interest rates and the pressing need for some to sell due to financial pressures.
The uptick in sales was uniform across the Montreal CMA's main areas, with the Island of Montreal leading with a 40% increase in transactions. The real estate activity in other areas, including the North Shore, South Shore, and Vaudreuil-Soulanges, also saw substantial increases, showcasing widespread market vitality.
Differences in transactional activity by property category were significant, with single-family homes and condominiums both experiencing a 28% increase in sales, while small income properties saw an impressive 56% surge. This broad-based growth underscores the diverse appeal of Montreal's real estate offerings.
February also saw an 18% rise in active listings across the Montreal CMA, hinting at a slightly growing inventory despite being under the historical average. The average selling time remained stable for single-family homes and saw minimal increases for condominiums and small income properties.
Price assessments revealed a steady increase across all property categories, with single-family homes, condominiums, and plexes witnessing upticks in their median prices. These adjustments reflect the ongoing adjustments within the market, balancing buyer demand with the available inventory.
The early turnaround in Montreal's resale market suggests a robust start to 2024, driven by favorable demographic trends and the anticipation of easing interest rates. The significant increase in new listings and the absorption of active listings indicate a healthy demand and a market ready to accommodate both buyers and sellers. With median prices continuing to rise, the Montreal CMA remains a dynamic and attractive market for residential real estate.
This period of transition offers an opportune moment for stakeholders to engage with the market, leveraging the current conditions to achieve their real estate goals. As the year progresses, it will be crucial to monitor these trends closely to navigate the evolving landscape of Montreal's residential real estate market effectively.
For those seeking deeper insights or specific regional details, the QPAREB’s Market Analysis Department remains a valuable resource for comprehensive data and analysis on the Quebec real estate market.