Montreal Real Estate Market: Q3 2023 Insights

The Quebec Professional Association of Real Estate Brokers (QPAREB) recently released a report detailing the third-quarter real estate market trends for 2023 in Quebec, with a special focus on Montreal. Despite a backdrop of rising interest rates, the Quebec market, particularly in Montreal, showed resilience and growth.

Key Findings

Sales Trends

• Overall Sales: In Quebec, residential sales reached 18,283, marking a 1% increase from 2022. This uptick is noteworthy considering the economic climate.
• Property Category Performance: Different segments showed varying trends:
  • Plexes saw an 8% increase with 1,755 transactions.
  • Condominium sales rose by 3% to 4,493.
  • Single-family home sales remained stable at 11,971 transactions.

Montreal-Specific Trends

• The Montreal CMA (Census Metropolitan Area) observed a 4% rise in sales, totaling 8,575 transactions.
• Active listings increased by 13%, with single-family and condominium listings both growing by 14%.

Pricing Dynamics

• The median price for single-family homes in Quebec was $420,000, a 5% year-over-year increase but a 2% decrease from Q2 2023.
• In Montreal, the median price for single-family homes reached $555,000, up 4% from the previous year.

Market Conditions

• Despite the growth, the average selling time in Quebec has increased, indicating a slight easing in market tensions.
• In Montreal, the number of months required to sell inventory has increased to 5.0 months.

Analysis

Market Resilience

• The Montreal real estate market has demonstrated remarkable resilience in the face of economic pressures like interest rate hikes.
• The moderate increase in sales and prices suggests a healthy market that is not overly inflated.

Seller's Market

• The increase in the time required to sell properties and the growth in active listings suggest a gradual shift towards a more balanced market, though it still favors sellers.

Regional Variances

• The Quebec market shows diversity, with different regions experiencing varying trends. Montreal, as a major urban center, continues to attract buyers despite broader economic challenges.

The third quarter of 2023 has been a period of cautious optimism for the Montreal real estate market. With steady sales, a slight increase in prices, and a more balanced inventory, the market is navigating through economic uncertainties effectively. Buyers and sellers in Montreal should remain attentive to these trends as they plan their real estate transactions.