Average house prices in Montréal rise in second quarter, should remain stable
for the second half of 2010
Low interest rates and a lack of inventory led to increases but greater supply in third and fourth quarters will cause prices to stabilize
MONTREAL, July 7 /CNW/ - The Royal LePage House Price Survey and Market Survey Forecast released today showed strong year-over-year price appreciation for all housing types surveyed in Montreal. A low inventory of homes for sale combined with the expectation that interest rates would rise led to the increases seen in the second quarter. Royal LePage anticipates a more balanced local real estate market for the remainder of the year and predicts that house prices will stabilize.
During the second quarter, the average price of a detached bungalow increased by 8.7 per cent to $255,906. The price of a standard two-storey home rose 7.5 per cent to $357,833 year-over-year, while the average price of a standard condominium was up 8.0 per cent to $226,048.
"The real estate market was quite active during the months of April and May. Buyers were motivated to enter the market before interest rates were expected to rise while low inventory levels meant that supply couldn't keep up with demand. This led to price increases for all housing types in Montreal," explained Dominic St-Pierre, director, Royal LePage Real Estate Services, Québec region. "Inventory levels rose toward the end of the second quarter and the decrease of demand from first-time homebuyers have caused price appreciation to slow in June."
St-Pierre noted that first-time homebuyers, for whom affordability is a major concern, were the most active at the beginning of the second quarter. "The majority of first-time homebuyers purchased homes in the first quarter and early second quarter of 2010 since they were concerned about the increase of interest rates," he said. "With affordability eroding slightly at the end of Q2, second and third-time homebuyers have become the most active in the market. They are interested in high-end properties and sectors such as Mont-Royal, Centre-Ville and St-Laurent," said St-Pierre.
According to St-Pierre, the real estate market should slow down in the second part of the year though prices for all housing types in Montreal should remain stable. "The real estate market will remain excellent, but will be more balanced until the end of 2010. The number of unit sales for this year should be similar or slightly over what we have seen in 2009. For now, we have 24 per cent more unit sales than the same period last year. However, this advance will slowly crumble to meet last year's numbers. The real estate market should slowdown in July and be more active at the beginning of September as first-time home buyers will be back on the market," he concluded.
Survey of Canadian House Prices in the second quarter of 2010
Average home prices
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Standard bungalow
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Last Difference
Average quarter Average (%)
Market Q2 2010 average Q2 2009 Bungalow
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Beaconsfield 310,000 305,000 295,000 5.1%
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Boucherville 269,246 256,000 238,687 12.8%
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Côte-St-Luc 251,000 249,000 242,000 3.7%
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Dorval 275,000 260,000 247,000 11.3%
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Lachine 265,000 245,000 227,000 16.7%
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Lasalle/Verdun 207,000 206,000 205,000 1.0%
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Montréal West* n/a n/a n/a n/a
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Notre-Dame-de-Grâce* n/a n/a n/a n/a
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St-Bruno 225,000 223,900 200,000 12.5%
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St-Lambert 245,000 244,000 229,500 6.8%
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Westmount* n/a n/a n/a n/a
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Montréal 255,906 248,613 235,523 8.7%
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* Type of property not covered in the sector
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Two-storey house
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Difference
Last (%)
Average quarter Average 2-storey
Market Q2 2010 average Q2 2009 house
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Beaconsfield 390,000 380,000 375,000 4.0%
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Boucherville 321,500 305,000 277,250 16.0%
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Côte-St-Luc* n/a n/a n/a n/a
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Dorval 275,000 265,000 248,000 10.9%
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Lachine 275,000 255,000 236,000 16.5%
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Lasalle/Verdun* n/a n/a n/a n/a
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Montréal West 374,000 374,000 365,000 2.5%
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Notre-Dame-de-Grâce 385,000 383,000 380,000 1.3%
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St-Bruno 255,000 249,000 230,000 10.9%
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St-Lambert 290,000 290,000 275,000 5.5%
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Westmount 655,000 655,000 610,000 7.4%
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Montréal 357,833 350,667 332,917 7.5%
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* Type of property not covered in the sector
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Condominium
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Difference
Last (%)
Average quarter Average Standard
Market Q2 2010 average Q2 2009 condo
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Beaconsfield* n/a n/a n/a n/a
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Boucherville 196,430 190,500 177,800 10.5%
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Côte-St-Luc 238,000 239,000 232,000 2.6%
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Dorval 240,000 232,000 216,000 11.1%
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Lachine 280,000 262,000 250,000 12.0%
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Lasalle/Verdun 169,000 168,000 167,000 1.2%
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Montréal West* n/a n/a n/a n/a
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Notre-Dame-de-Grâce 237,000 235,000 232,000 2.2%
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St-Bruno 187,000 185,000 177,000 5.6%
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St-Lambert 182,000 180,000 172,000 5.8%
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Westmount 305,000 300,000 260,000 17.3%
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Montréal 226,048 221,278 209,311 8.0%
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* Type of property not covered in the sector
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 second quarter. A printable version of the second quarter 2010 survey will be available online on August 6, 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 1970s.
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. 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 or www.brookfieldres.com
For further information: Valérie Dupuis, Fleishman Hillard Inc., (514) 866-6776, ext. 312, [email protected]; Tammy Gilmer, Director, Public Relations and National Communications, Royal LePage Real Estate Services, 416 510-5783
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