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Condominium Sales Hit Record High

Condominium Sales Hit Record High

 

ÎLE-DES-SOEURS, QUEBEC--(Marketwire - Jan. 24, 2012) - There were 40,403 MLS® sales transactions in the Montréal Metropolitan Area in 2011, a 4 per cent decrease compared to 2010, according to the Greater Montréal Real Estate Board (GMREB). This result does take away from the fact that condominium sales continue to set new records.

"Like in 2010, there were two distinct phases in 2011," said Paul Cardinal, Economist for the GMREB. "The first five months of the year showed decreased activity as sales of single-family homes, condominiums and plexes fell compared to the same months in 2010. But the market then gained momentum and sales began to increase. Again in 2011, condominiums posted the best sales results in the Montréal area with 12,776 transactions, representing a 1 per cent increase compared to 2010 and a new sales record," he added.

The decrease in the number of MLS® sales in 2011 was due to a 6 per cent decrease in single-family home sales and a 10 per cent decrease in plex sales.

Only the Vaudreuil-Soulanges area bucked this downward trend by recording approximately the same number of transactions (0 per cent) as in 2010, due to a 9 per cent increase in condominium sales. Sales decreased moderately on the Island of Montréal (-2 per cent), the North Shore (-3 per cent) and Laval (-5 per cent) in 2011, while the biggest drop occurred on the South Shore (-11 per cent). Sales on the South Shore decreased for all three property categories, making it the only area that posted a drop in condominium sales (-8 per cent).

"Interestingly in 2011, for the first time, there were more transactions on the North Shore than on the South Shore," added Mr. Cardinal.

All three property categories finished 2011 with a median price that was higher than that registered in 2010, with a 5 per cent increase. The median price of single-family homes reached $265,000 in the Montréal area. The median price of condominiums reached $220,000 and that of plexes reached $400,000. While still strong, the rate of price increases slowed down in 2011 compared to 2010.

Market Strengthened in Fourth Quarter

The year finished on a positive note as fourth quarter sales increased by 5 per cent compared to the same period in 2010. Three suburban areas led the way: Vaudreuil-Soulanges registered a 21 per cent increase in sales, the North Shore registered an 11 per cent increase and Laval registered a 7 per cent increase.

The number of active listings on the MLS® system increased from 20,414 to 22,977 as at December 31, 2011. This represents a 13 per cent increase compared with the same date in 2010.

2011 Review for the Province: Slight Decrease in Sales While Prices Continued to Rise

There were 77,258 MLS® sales transactions in the province of Québec in 2011, a slight decrease of 3 per cent compared to 2010, according to the Québec Federation of Real Estate Boards (QFREB).

"The QFREB had forecast a 4 per cent decrease in residential sales across the province in 2011, but the year concluded on a more positive note with a slight 3 per cent decrease," said Paul Cardinal. "Similar to 2010, the Québec resale market had two distinct phases. However, the pattern was reversed from 2010 in that the first four months of 2011 were marked by a decrease in sales and were then followed by a series of seven consecutive monthly increases beginning in June," he added.

Condominiums were the only property category to register an increase in the number of sales in 2011, with 16,680 transactions, a 1 per cent increase compared to 2010. It is also the only category that has not registered a drop in annual provincial sales since 2001. While sales of single-family homes were stable in 2010, they decreased by 4 per cent in 2011 with 53,371 transactions across the province. Plexes registered a second consecutive annual decrease with only 6,819 sales, a drop of 9 per cent compared to 2010.

The year 2011 was also marked by moderate price increases across the province. Other than plexes in the Trois-Rivières CMA, all property categories in all of the province's CMAs registered an increase in median price. The median price of single-family homes across Québec reached $217,500 in 2011, a 4 per cent increase compared to 2010.

"As predicted, market conditions in 2011 continued to relax, with an average of 59,159 available properties. All of the province's CMAs recorded an easing of market conditions for single-family homes," indicated Mr. Cardinal.

About the Greater Montreal Real Estate Board

The Greater Montréal Real Estate Board is a non-profit organization that brings together most of the real estate brokers who work in the Greater Montréal area. With close to 11,000 members, it is the second largest board in Canada. Its mission is to actively promote and protect its members' professional and business interests in order for them to successfully meet their business objectives.

More Information on centris.ca®

For more information, including quarterly statistics for the province of Québec, as well as its municipalities and regions, visit centris.ca®, Québec's real estate industry website.

About the Québec Federation of Real Estate Boards

The Québec Federation of Real Estate Boards is a non-profit organization composed of Québec's 12 real estate boards as associate members as well as close to 15,000 real estate brokers who are affiliated members. Its mission is to promote and protect the interests of Québec's real estate industry so that the boards and their members can successfully meet their business objectives.

For more information on MLS® statistics for each of the province's regions, don't miss the upcoming publication of the MLS® Barometer