MONTREAL — Luxury homes saless in Montreal are back in the game of the real estate market and on the rise.
A new report released by Sotheby’s International Realty said that sales of luxury homes of over $1 million are up by 21 per cent compared to this time last year, reflecting a balanced market entering the new year.
The report stated that the market picked up in the second half of 2014, after the win of the Liberal government in the provincial elections.
A total of 434 luxury real estate properties sold last year, including condominiums and family homes. This number is compared to 359 units sold in 2013.
There was a significant increase in the number of units sold in the $1-to-2 million and $2-to-4 million price categories, which showed a surge of 16 per cent and 45 per cent from 2013 respectively. The number of $4-million-plus homes also increased; the Montreal market sold a total of seven homes last year, a significant number compared to just the one that was sold in 2013.
Garo Kazandjian, a real estate broker for Remax Quebec, said that 75 per cent of these luxury-home buyers are local, while the rest are international, mainly from Asia, the Middle East and Russia.
According to Kazandjian, the reason for this increase is that people have more confidence investing in property market, rather than other fluctuating markets such as stocks.
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Although many of the homes in the category of the $4-million-plus mark have been on the rise since last year, they have also been difficult to sell on the Montreal market, which has forced sellers to lower their prices.
Kazandjian explained that once houses are put on the price scale of the $10-million-plus mark, the competition of the market expands to a much larger range. He said that sellers are competing against other Canadian cities, as well as cities in the United States.
According to local market experts, entry prices for Montreal’s luxury homes have remained more accessible than other metropolitan cities in Canada. The market prices for condominiums begin at $1.1 million, $1.5 million for attached homes and $1.8 million for detached single family homes.
Take a look at a sampling of million-dollar homes currently on the market in and around Montreal.