July 5, 2017 - Following a difficult period in Quebec, condo sales rebounded in 2017. They rose 24% in May, compared with the same period last year. This is what emerges from a study prepared by Desjardins.
This study shows that, overall, in the Greater Montréal, total sales (houses and condominiums) grew by 15%, while Gatineau and Québec posted respective increases of 25% and 11%.
"Despite the fact that the condominium market is less oversupplied than before, there is still a surplus in the six largest urban centers in Quebec," said study author Hélène Bégin, a senior economist with Desjardins. However, given the fewer available residences on the market, prices have increased by 5%, both for homes and condos.
In addition, there does not appear to be any concern about the recent imposition of a 15% tax (in Ontario) upon foreign investors acquiring a property, to stop property speculation in the Greater Toronto Area, and which has dramatically inflated prices. Even if some of these investors fall back on Montreal, the pundits state that "the market of the metropolis is not likely to ignite in the near future.
In the final analysis end, new constructions benefited greatly from this upturn in sales. In the first five months of the year, housing starts increased by 39% compared to the same period last year. The study reveals that, «All market segments are participating in this increase, including the condominiums segment, which is particularly active,".
Between January and May 2017, in the Montréal metropolitan area RMR, there were 3,301 units startups, compared to 1,856 during the same period in 2016. The same cannot be said of elsewhere in Quebec, where there were only approximately 400 units’ startups since the beginning of the year.
To view the entire study, click on this hyperlink.
Montreal, July 5, 2017