Average house prices in Montreal increase over the first quarter of 2010

- Inventory remains low, first-time homebuyers are scouting the real estate market and demand for all types of properties is on the rise -

MONTREAL, April 8 /CNW/ - The House Price Survey released today by Royal LePage Real Estate Services indicates that low inventory coupled with high demand from first-time homebuyers and a sustained interest in all types of properties by consumers are contributing to an increase in the average price of homes for the first quarter of 2010.

"There has been a great deal of activity in the real estate market in Montreal over the first quarter of 2010, as seen by the reported increase of 7% in the selling price of detached bungalows, standard two-storey properties, and condominiums. Sales of condominiums have soared in Montreal due to the high levels of activity from first-time homebuyers and the vast inventory for the kind of property they are looking for. On average, the inventory is rather low in Montreal and, at the moment, there are insufficient bungalows and standard two-storey homes to meet the current demand. This type of situation gives rise to an increase in the selling price," explains Dominic St-Pierre, Director, Royal LePage Real Estate Services, Quebec Region.

For the first quarter of 2010, the Montreal market posted average price increases for all property types surveyed. The average price of a bungalow climbed by 7.2 percent to $249,172, the price of a standard two-storey house increased by 7.6 percent year over year to reach $355,109, while the average price of a condominium increased by 7.6 percent, to $222,244.

"The first quarter of 2010 was clearly a seller's market and buyers were forced into situations where they had to make quick, on-the-spot decisions. It was not uncommon to witness multiple offer scenarios and to see properties sell above their asking price. In the majority of cases, properties were selling at their asking price or very close to it," adds Dominic St-Pierre.

The number of properties sold this quarter significantly increased compared to the same period last year. "However, this increase is hardly surprising given that sales from the first quarter of 2010 are being compared to those in 2009. At this time last year, the real estate market was experiencing a downturn due to the economic crisis. If we compare units sold during the first quarter of 2010 to those sold in the first quarter of 2007, we note only a slight increase," according to Dominic St-Pierre.

    
    Royal LePage House Price Survey for the first quarter of 2010
    Average house prices

    -------------------------------------------------------------------------
                              Standard bungalow
    -------------------------------------------------------------------------
                                                Last              Difference
                                 Average     quarter     Average         (%)
    Market                       Q1 2010     average     Q1 2009    Bungalow
    -------------------------------------------------------------------------
    Beaconsfield                 305,000     305,000     290,000        5.2%
    -------------------------------------------------------------------------
    Boucherville                 256,000     253,000     237,000        8.0%
    -------------------------------------------------------------------------
    Côte-St-Luc                  249,000     246,000     239,000        4.2%
    -------------------------------------------------------------------------
    Dorval                       260,000     252,500     243,000        7.0%
    -------------------------------------------------------------------------
    Lachine                      245,000     235,000     224,000        9.4%
    -------------------------------------------------------------------------
    Lasalle/Verdun               206,000     205,000     198,000        4.0%
    -------------------------------------------------------------------------
    West Island*                   N/A         N/A         N/A         N/A
    -------------------------------------------------------------------------
    Notre-Dame-de-Grâce*           N/A         N/A         N/A         N/A
    -------------------------------------------------------------------------
    St-Bruno                     228,378     223,900     200,000       14.2%
    -------------------------------------------------------------------------
    St-Lambert                   244,000     240,000     228,000        7.0%
    -------------------------------------------------------------------------
    Westmount*                     N/A         N/A         N/A         N/A
    -------------------------------------------------------------------------
    Montréal                     249,172     245,050     232,375        7.2%
    -------------------------------------------------------------------------
    * Type of property not covered in the sector


    -------------------------------------------------------------------------
                               Two-storey house
    -------------------------------------------------------------------------
                                                                  Difference
                                                Last                  (%) 2-
                                 Average     quarter     Average      storey
    Market                       Q1 2010     average     Q1 2009       house
    -------------------------------------------------------------------------
    Beaconsfield                 380,000     380,000     370,000        2.7%
    -------------------------------------------------------------------------
    Boucherville                 305,000     292,600     276,500       10.3%
    -------------------------------------------------------------------------
    Côte-St-Luc*                   N/A         N/A         N/A         N/A
    -------------------------------------------------------------------------
    Dorval                       265,000     255,000     244,000        8.6%
    -------------------------------------------------------------------------
    Lachine                      255,000     242,500     232,000        9.9%
    -------------------------------------------------------------------------
    Lasalle/Verdun*                N/A         N/A         N/A         N/A
    -------------------------------------------------------------------------
    West Island                  374,000     372,000     360,000        3.9%
    -------------------------------------------------------------------------
    Notre-Dame-de-Grâce          383,000     380,000     375,000        2.1%
    -------------------------------------------------------------------------
    St-Bruno                     253,980     249,000     230,000       10.4%
    -------------------------------------------------------------------------
    St-Lambert                   290,000     286,000     273,000        6.2%
    -------------------------------------------------------------------------
    Westmount                    690,000     655,000     610,000       13.1%
    -------------------------------------------------------------------------
    Montréal                     355,109     345,789     330,056        7.6%
    -------------------------------------------------------------------------
    * Type of property not covered in the sector


    -------------------------------------------------------------------------
                                 Condominium
    -------------------------------------------------------------------------
                                                                  Difference
                                                Last                     (%)
                                 Average     quarter     Average    Standard
    Market                       Q1 2010     average     Q1 2009       condo
    -------------------------------------------------------------------------
    Beaconsfield*                  N/A         N/A         N/A         N/A
    -------------------------------------------------------------------------
    Boucherville                 190,500     173,500     168,750       12.9%
    -------------------------------------------------------------------------
    Côte-St-Luc                  239,000     239,000     229,000        4.4%
    -------------------------------------------------------------------------
    Dorval                       232,000     222,500     212,000        9.4%
    -------------------------------------------------------------------------
    Lachine                      262,000     255,000     247,000        6.1%
    -------------------------------------------------------------------------
    Lasalle/Verdun               168,000     165,000     165,000        1.8%
    -------------------------------------------------------------------------
    West Island*                   N/A         N/A         N/A         N/A
    -------------------------------------------------------------------------
    Notre-Dame-de-Grâce          235,000     233,000     230,000        2.2%
    -------------------------------------------------------------------------
    St-Bruno                     188,700     185,000     177,000        6.6%
    -------------------------------------------------------------------------
    St-Lambert                   180,000     177,000     170,000        5.9%
    -------------------------------------------------------------------------
    Westmount                    305,000     300,000     260,000       17.3%
    -------------------------------------------------------------------------
    Montréal                     222,244     216,667     206,528        7.6%
    -------------------------------------------------------------------------
    * Type of property not covered in the sector
    

About the Royal LePage House Price Survey

The Royal LePage Survey of Canadian House Prices is the largest, most comprehensive study of its kind in Canada, with information on seven types of housing in over 250 neighbourhoods from coast to coast. This release references an abbreviated version of the survey, which highlights house price trends for the three most common types of housing in Canada in 80 communities across the country. A complete database of past and present surveys is available on the Royal LePage Web site at www.royallepage.ca, and current figures will be updated following the end of the first quarter. A printable version of the first quarter 2010 survey will be available online on May 7, 2010.

Housing values in the Royal LePage Survey are Royal LePage opinions of fair market value in each location, based on local data and market knowledge provided by Royal LePage residential real estate experts. Historical data is available for some areas back to the early 1970.

About Royal LePage

Royal LePage is Canada's leading provider of franchise services to residential real estate brokerages, with a network of nearly 14,000 real estate professionals in over 600 locations across Canada. Royal LePage is the only Canadian real estate company to have its own charitable foundation; the Shelter Foundation which is dedicated exclusively to funding women's shelters and violence prevention and education programs. Royal LePage is managed by Brookfield Real Estate Services, and is part of a brand family that includes Royal LePage, Real Living, Johnston and Daniel, and La Capitale Real Estate Network. An affiliated company, Brookfield Real Estate Services Fund, is a TSX listed income trust, trading under the symbol "BRE.UN."

For more information visit www.royallepage.ca

SOURCE Royal LePage Real Estate Services

For further information: For further information: Valérie Dupuis, Fleishman Hillard Inc., (514) 866-6776, valerie.dupuis@fleishman.ca; Tammy Gilmer, Director, Public Relations and National Communications, Royal LePage Real Estate Services, (416) 510-5783


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