2017 marked a significant shift in the Montreal market, especially for the West Island. Low inventory, combined with low interest rates and strong economic factors led to the type of hot market activity we haven’t seen in over a decade. Sales were up 15% and median prices increased 6% in Montreal for single-family homes. Many West Island municipalities saw double-digit price increases for the first time in recent memory.
West Island communities are hotter than ever
Homes are frequently selling above asking price after receiving multiple offers. In fact, Pointe-Claire and Beaconsfield actually had the greatest percentage of homes selling over asking price throughout the entire province.
Looking ahead for 2018
It’s expected that Montreal will remain a force-of-nature in Canadian real estate in 2018. The city’s economy is forecast to grow by 1.9% in this year; this positive outlook, combined with factors such as low housing inventory, will continue to spur explosive growth throughout the city for at least the first half of the year.
Tracking external factors
The city is viewed optimistically by real estate investors as a promising and affordable market relative to other major Canadian cities, making it increasingly attractive to overseas buyers seeking to avoid Ontario’s 15% tax on foreign buyers. Canadians from other provinces are also looking to the city in response to increasing home prices in Vancouver and Toronto.
Understanding new rates and regulations
With an increase in the key interest rate already in the books for 2018, it remains to be seen how this bump, coupled with the new Office of the Superintendent of Financial Institutions (OSFI) stress test regulations will impact the Montreal market.
Buyers seeking a mortgage must now qualify against the Bank of Canada benchmark rate, or their pre-approved rate, plus 2% (whichever is higher), reducing borrowing capacity by a minimum of 18.5%. The effects of these changes have yet to be seen, with some analysts predicting a drop in house prices, and others reporting that many first time buyers may need to decrease their budget or delay homeownership all together. However, it’s expected that blue chip markets, such as the west island communities we serve, will be least affected by these changes.
Working with local experts to optimize your experience
With complex market conditions and new regulations to decipher, local market intelligence and the value of an experienced broker are more important now than ever before.
Looking to sell your home? Having a broker who is absolutely in tune with your local market is key. Thanks to decades in the business, Deakin brokers have a unique understanding of the communities we serve, and are up-to-date on current listings, including homes under contract with offers, and specific buyers in the market that may impact outcomes.
In the market as a buyer? Our brokers can guide you through the competitive landscape and advise you on how to decide when a home is right for you and your family. In today’s market, that often means helping buyers know when to go “all in” on a property and when to stand back and let market exuberance run its course. Our ultimate goal is to create long-term value for our clients
Thinking of buying or selling your home in 2018? Contact us to learn about how our local experts can guide you through the process.