Montréal’s Real Estate Market Slowed in May 2010

Published on by Association des Propriétaires du Québec

Topic(s): Real estate

Source: GMREB

Montréal’s Real Estate Market Slowed in May 2010
There were 4,403 sales transactions in the Montréal Metropolitan Area in May 2010, an 8 per cent decrease compared to May 2009, according to the Greater Montréal Real Estate Board's MLS® statistics.

"It's not unexpected to see a slowdown in the real estate market given that the market was extremely active the last few months with consumers getting back into the market following the recession," said Michel Beausejour, FCA, Chief Executive Officer of the GMREB.

"Aside from experiencing some pent up demand from consumers, others were buying their properties earlier than planned, wanting to avoid an increase in mortgage interest rates. Plus, we're heading into the summer months when the real estate market tends to naturally slow down," he added.

Condominium sales in the Montréal area decreased by 6 per cent in May 2010 compared to the same month last year, while single-family and plex sales decreased by 9 and 10 per cent, respectively.

Geographically, Laval performed well as sales were stable in May 2010 compared to May 2009. Sales fell slightly by 2 per cent in Vaudreuil-Soulanges, and decreased by 7 per cent on the Island of Montréal, by 11 per cent on the North Shore and by 15 per cent on the South Shore. These last two areas were the most active in May 2009, which explains their larger decrease.

Despite the sales decrease, prices continued to increase in the Montréal area in May 2010. Plexes led the way with an 11 per cent increase in the median price compared to May 2009, reaching $390,000. The median price of single-family homes increased by 8 to reach $257,000, while that of condominiums increased by 7 per cent to reach $207,000. 

“The inventory of properties for sale in the Montréal area has been decreasing over the past few months, which has tightened market conditions. This explains why prices are still increasing despite the decrease in sales,” said Michel Beauséjour.

As at May 31, 2010, the number of active listings on the MLS® system decreased by 16 per cent in comparison with the same date last year.

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