From the West Island Chronicle, May 2011:

The real estate market in some parts of the West Island has been outperforming the Montreal market as a whole for the first three months of 2011, according to Pointe Claire’s Deakin Realty firm. Meanwhile, the market in the greater Montreal area has slowed down compared to last year’s near-record-breaking year in terms of transactions and price appreciation.

According to the Greater Montreal Real Estate Board, the organization that keeps real estate statistics for the Montreal region, the sales volume and number of transactions has gone down a bit since last year.

“What that means for consumers is fewer transactions and a more modest growth - instead of five, six or seven per cent, we’re looking at three to four per cent transaction growth, which means prices will be lower. This is due in part to the fact that buyers are concerned about interest rates presumably going up in the short-medium rate,” said Pointe-Claire real estate agent Jay Deakin.

According to him, the assumption is that the rates are going to go up, taking into consideration the fact that over the last three years, the rates have been historically low, averaging between 3.5 and five per cent for five-year terms.

“The rates cannot continue at this level, so people are more in a hurry to lock up a five-year deal. The market is thus very attractive and will continue to be during the next sixty days, depending on the bank. It’s a good time to buy now,” said Deakin.

In Montreal as a whole, according to the Greater Montreal Real Estate Board, the market is moving away from a sellers’ market, where few sellers enjoy better negotiating power, towards a more balanced market. There are more houses for sale than there were a year ago at this time. The statistics are showing a 13 per cent increase in active listings over last year.

“This means prices will go down or won’t go up as fast, before we get to a balanced market. Compared to last year, buyers have more selection thus more negotiating leverage,” said Deakin.

“What we’re living in today is the cheapest money that’s ever existed. Our parents didn’t have financing this cheap - they weren't paying five per cent. We’re paying on variable rate mortgages that are ridiculous, sometimes as low as 1.75 per cent,” said Jay’s father, John Deakin, who is also a real estate broker at Deakin Realty.

Even though supply may be up, Jay thinks the market is still attractive for West Island sellers given the relatively limited number of houses for sale in the region. “We’re getting a little bit more active listings in the West Island. Houses in the $300,000 to $500,000 price range, listed within five per cent of their market value, sell extremely quickly - in a week or two,” he said.