It was a record year for Montreal real estate, according to the Royal LePage House Price Survey.
In the Greater Montreal Area, the survey found the median price of a two-storey home reached $517,190 — an increase of 3.5 per cent during last year’s fourth quarter, compared with the same time in 2017.
The average price of bungalows increased by 5.1 per cent to $315,257; the price of condominiums reached $328,254 after a 4.9 per cent increase.
“The condo market remained the most resilient and the most active this quarter, just like the rest of the year,” said Dominic St-Pierre, vice president and general manager of Royal LePage in Quebec.
“We may notice a very gradual reduction in demand over the next year.”
The market in Montreal has not seen the same soaring prices as Toronto or Vancouver and this stability is attracting buyers, according to the survey.
It found the price of a home in Montreal stands at about half the price of Toronto and one third of the Vancouver market.
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“The price appreciation rate exceeded the national average for the last three quarters of 2018, the unemployment rate remained historically low and consumer confidence greatly surpassed the average of the past 10 years,” St-Pierre said.
The Greater Montreal area has an estimated home price increase of 3.0 per cent, compared to 1.3 per cent in Toronto and 0.6 per cent in Vancouver.
“This upturn can be explained by the concentrated demand for two-storey homes in the price range $300,000 to $350,000, which is below the median price,” St-Pierre said.
St-Pierre added Montreal is expected to maintain its lead in the Canadian real estate market, as well economic growth, this year, albeit at a slower pace than in 2018.
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“There is also a noticeable shift in demand for bungalows from families seeking to gain a foothold in the real estate market,” St-Pierre noted.
“Greater Montreal will remain a sellers’ market in 2019, and likely longer. The Montreal market is very active due to its affordability compared to other Canadian cities and unprecedented economic conditions, including rising wages.”