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Residential Sales in Montreal Area Start to Increase Again in Third Quarter of 2013

Residential Sales in Montreal Area Start to Increase Again in Third Quarter of 2013

ÎLE-DES-SOEURS, QUÉBEC--(Marketwired - Oct. 15, 2013) - According to the real estate brokers' provincial database, there were 7,320 residential sales transactions in the Montréal Census Metropolitan Area (CMA) in the third quarter of 2013, indicated the Greater Montréal Real Estate Board (GMREB). This represents a 2 per cent increase compared to the same period in 2012 and the first increase after four consecutive quarterly decreases.

Geographically, most areas of the CMA registered an increase in residential sales in the third quarter of the year as compared to the same quarter of last year. The South Shore posted the largest increase at 9 per cent, followed by Vaudreuil-Soulanges (+ 6 per cent) and the Island of Montréal (+ 4 per cent). In contrast, the northern suburbs, meaning the North Shore and Laval, registered respective decreases of 2 and 8 per cent.

"Despite the increase in sales, the number of residential properties for sale continued to climb in the third quarter of 2013 in all main areas of the CMA, at a similar pace or even a more sustained pace than the previous quarter," said Diane Ménard, Vice-President of the GMREB Board of Directors and spokesperson for the Québec Federation of Real Estate Boards (QFREB) for the Montréal area. "This is the twelfth consecutive quarter that the supply of residential properties has increased," she added. The number of active listings registered the largest increase in Laval, jumping by 22 per cent compared to the third quarter of last year. The North Shore once again registered the smallest increase in the number of active listings, at 11 per cent.

"Market conditions relaxed in the third quarter of 2013 for single-family homes, but remained balanced. The plex market also remained balanced, while the condominium market favoured buyers," said Paul Cardinal, Market Analysis Manager at the Québec Federation of Real Estate Boards. "This relaxing of market conditions resulted in relatively stable prices in the Montréal CMA," he added. The median price of condominiums in the Montréal CMA increased by 2 per cent in the third quarter of 2013 to reach $282,500. The median price of condominiums and plexes remained stable at $229,658 and $425,000, respectively.

Sales Stabilize in Québec in Third Quarter of 2013

According to the real estate brokers' provincial database, there were 15,223 residential sales transactions in Québec in the third quarter of 2013, barely 65 transactions more than in the third quarter of 2012, indicated the Québec Federation of Real Estate Boards (QFREB). This stabilization of sales put an end to four consecutive quarterly decreases.

By property category, plexes and condominiums registered an increase in sales in the third quarter of 2013, at 8 per cent and 3 per cent, respectively. Single-family homes, which accounted for more than 70 per cent of all residential transactions in Québec, was the only property category to post a decrease in sales (- 1 per cent).

Two of the province's six Census Metropolitan Areas (CMAs) registered an increase in sales: Montréal (+ 2 per cent) and Gatineau (+ 1 per cent). The other CMAs experienced a slowdown in real estate activity, with decreases ranging from 2 per cent to 22 per cent. The number of sales in all areas outside the CMAs was similar to that registered in the third quarter of 2012.

The number of residential properties for sale continued to climb in the third quarter of 2013, marking a thirteenth consecutive quarterly increase in supply. On average, 69,774 residential properties were listed on the Centris® system from July to September, an 11 per cent increase compared to the same period in 2012. And for the thirteenth consecutive quarter, it was the supply of condominiums that registered the largest increase, at 21 per cent, while the supply of single-family homes and plexes were limited to increases of 8 per cent and 6 per cent, respectively.

The median price of single-family homes rose by 2 per cent compared to the third quarter of last year, to reach $222,000. This increase took place after two quarters in which prices remained stable. "After a start to the year marked by a stagnation in median price, price growth has resumed and should reach 2 per cent for the year 2013," predicted Paul Cardinal, Market Analysis Manager at the QFREB.

About the Greater Montréal Real Estate Board

The Greater Montréal Real Estate Board is a non-profit organization that brings together close to 11,000 real estate broker members. Its mission is to actively promote and protect its members' professional and business interests in order for them to successfully meet their business objectives.

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 and close to 14,000 real estate brokers who are 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.

About Centris®

Centris®, a division of the Greater Montréal Real Estate Board, offers technology resources to Québec's 12 real estate boards and their 14,000 real estate brokers. Centris.ca is Québec's real estate industry website for consumers, grouping all properties for sale by a real estate broker under the same address.

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