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Residential Sales Slowed in the Montreal Area in Third Quarter of 2012

Residential Sales Slowed in the Montreal Area in Third Quarter of 2012

ÎLE-DES-SOEURS, QUEBEC--(Marketwire - Oct. 16, 2012) - According to the real estate brokers' provincial database, there were 7,175 residential sales transactions in the Montréal Metropolitan Area in the third quarter of 2012, indicated the Greater Montréal Real Estate Board. This represents a 7 per cent decrease compared to the third quarter of last year and the first quarterly decrease in sales since the second quarter of 2011.

"The residential real estate market gradually lost its momentum in the Montréal area in the third quarter of 2012," 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. "In July, sales increased everywhere except on the Island of Montréal but by August the downward trend had already extended to most areas, except the North Shore, and in September all areas of the Montréal Metropolitan Area registered a decrease in sales. This slowdown can most probably be explained by the newest tightening of mortgage insurance rules," she added.

The North Shore was the only area that posted an increase in sales in the third quarter of the year with 1,664 transactions (+1 per cent), while the largest decreases in sales were on the Island of Montréal (2,832 transactions) and Vaudreuil-Soulanges (356 transactions), with respective drops of 12 and 10 per cent. Laval (-9 per cent) and the South Shore (-5 per cent) registered more moderate decreases.

By property category, single-family home sales registered the smallest decrease throughout the Montréal Metropolitan Area with a 6 per cent drop (4,167 transactions) compared to the third quarter of 2011. This was followed by condominium sales, which fell by 9 per cent (2,290 transactions), and by plex sales, which fell by 13 per cent (711 transactions).

Property prices continued to increase in the third quarter of the year, despite the drop in sales. Plexes registered the largest increase at 5 per cent, for a median price of $425,000. The median price of single-family homes grew by 3 per cent to reach $277,750, while that of condominiums increased by 2 per cent to reach $230,000.

Finally, the supply of residential properties in the Montréal area increased for an eighth consecutive quarter. There was an average of 25,499 active listings in the third quarter of 2012, an 8 per cent increase compared to the third quarter of last year.

Residential Sales Across Québec Decreased in the Third Quarter of 2012

According to the real estate brokers' provincial database, there were 15,212 residential sales transactions in the province of Québec in the third quarter of 2012, indicated the Québec Federation of Real Estate Boards (QFREB). This represents a 6 per cent decrease compared to the third quarter of 2011 and the first drop in sales after four consecutive quarterly increases.

Sales fell for all three property categories across the province. Single-family home sales registered the smallest decrease at 4 per cent, with 10,895 homes sold. The decrease in condominium and plex sales was more significant, as sales for these property categories fell by 10 and 15 per cent, respectively, with 3,045 and 1,175 transactions.

"At this time of the year in 2011, the Québec real estate market was fuelled by condominiums," explained Paul Cardinal, Market Analysis Manager at the QFREB. "Thanks to a 10 per cent increase in condominium transactions, residential sales increased in Québec. This year, there were fewer condominium buyers in the urban centres of Montréal, Québec City, Gatineau and Sherbrooke," he added.

The number of residential properties for sale in Québec by a real estate broker continued to grow for a ninth consecutive quarter. While the supply of plexes and single-family homes posted modest increases of 2 and 5 per cent, respectively, in the third quarter of 2012 compared to the same period last year, the number of condominiums for sale was 20 per cent higher.

Prices continued to increase in the third quarter of 2012 for all property categories. The median price of single-family homes in Québec rose by 2 per cent to reach $217,500.

About the Greater Montreal 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. 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 www.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 and 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 statistics for each of the province's regions, don't miss the upcoming publication of the MLS® Barometer