Hot condo market driving home sales in Montreal

The Greater Montreal Real Estate Board says area home sales increased by 10 per cent in June, driven by a hot condo market.

There were 3,952 properties sold last month, the highest level for June in eight years.

READ MORE: A look at Montreal’s changing real estate market

The data comes amid concerns that a 15 per cent foreign buyers’ tax in the Greater Toronto Area could have a spillover effect on Canada’s second-largest city.

WATCH BELOW: Some provinces in Canada have already introduced a foreign buyer’s tax

1:45 Victoria considering foreign buyers tax

• Victoria considering foreign buyers tax
• Kathleen Wynne reverses course with foreign buyers tax, claims conditions have changed
• Ontario introduces 15% foreign buyer tax on homes in Golden Horseshoe
• Foreign buyers tax won’t affect those who live and work in B.C.

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Quebec’s Finance Minister, Carlos Leitao, has said he has no plans in the near term to introduce such a tax since foreigners accounted for only about 1.5 per cent of all Montreal-area sales in the first nine months of 2016, according to the Canada Mortgage Housing Corp.

READ MORE: Quebec open to foreign buyer’s tax, but no plans for now: Leitao

Housing sales in June were aided by a 17 per cent increase in sales on the Island of Montreal.

Condominium sales were up 20 per cent, marking a steady increase for a second consecutive month, while sales of single family homes rose four per cent.

READ MORE: Foreign home buyers surge in Montreal as Chinese continue to buy

The average price of Montreal area homes was $362,207 for June, up six per cent from a year ago. The average price for single family homes rose nine per cent to $396,367.