First-time buyers and low interest rates credited with the increase
MONTREAL, April 5, 2012 /CNW/ - Royal LePage's House Price Survey and Market Survey Forecast released today showed a steady increase in Montreal Island house prices in the first quarter compared to the same period last year. The presence of first-time buyers and continuing low interest rates contributed to the appreciation of prices.
During the first quarter, the average price of detached bungalows rose 3.5 percent to $286,000. The average price of standard two-storey homes increased by 4.9 percent, to $387,429, and that of standard condominiums went up 2.2 percent to $239,000.
"Once again, first time home buyers took part in the action on the real estate market during the first quarter. The competition for set interest rates that took place in recent months among large financial institutions also had a major impact on the real estate market performance, as these rates are historically low. While inventory is growing, demand for all property types has held firm, which explains the steady increase in prices," notes Dominic St-Pierre, Director of Real Estate Services at Royal LePage for the Quebec region.
In terms of the number of units sold, detached bungalows saw a 13 percent decline, while standard two-storey homes and standard condominiums increased by 4.6 and 4.7 percent, respectively.
"The decline in unit sales for detached bungalows this quarter can be explained by the fact that this type of property sells well, so there are fewer units available on the market. Unit sales of standard two-storey homes and standard condominiums rose nicely. Montreal is an island with geographic limits, which prevents new home construction to a certain degree. Buyers are going to want to maximize the value of their property, and the demand for standard two-storey homes and condos should hold steady," St-Pierre explains.
As far as inventory is concerned, it has grown by over 12 percent for all housing types combined. "The market is balanced, since we see an increase in the number of properties for sale and an increase in sales. Supply and demand are in step, hence the steady rise in prices," adds St-Pierre.
"Consumer confidence was shaken a bit by the recent job losses in the aeronautics and pharmaceuticals industries in both Quebec and Canada. It's interesting to note that the real estate market is doing well in spite of the economic situation, thanks to a fairly good stock market performance and consumer interest in real estate, which is seen as a good long-term investment," concludes Dominic St-Pierre.
Canadian House Price Survey for the First Quarter of 2012
Average home prices
| Detached bungalow | ||||
| Market | Average Q1 2012 |
Last Quarter Average |
Average Q1 2011 |
Difference (%) Detached bungalow |
| Beaconsfield | 307,000 | 307,500 | 292,500 | 5.0% |
| Dorval | 295,000 | 290,000 | 285,000 | 3.5% |
| Pierrefonds | 295,000 | 288,500 | 294,000 | 0.3% |
| Westmount | n/a | n/a | n/a | n/a |
| Notre-Dame-de-Grâce/ Côte-des-Neiges |
n/a | n/a | n/a | n/a |
| Ville-Marie | n/a | n/a | n/a | n/a |
| Le Plateau Mont-Royal | n/a | n/a | n/a | n/a |
| Rosemont/ La Petite Patrie |
n/a | n/a | n/a | n/a |
| Laval | 285,000 | 271,000 | 273,900 | 4.1% |
| Brossard | 265,000 | 255,000 | 250,000 | 6.0% |
| Longueuil | 255,000 | 240,000 | 239,000 | 6.7% |
| Boucherville | 300,000 | 286,500 | 300,000 | 0.0% |
| Montreal | 286,000 | 276,929 | 276,343 | 3.5% |
*Type of property not covered in the sector
| Standard Two-Storey Home | ||||
| Market | Average Q1 2012 |
Last Quarter Average |
Average Q1 2011 |
Difference (%) Two-storey Home |
| Beaconsfield | n/a | n/a | n/a | n/a |
| Dorval | 305,000 | 277,500 | 295,000 | 3.4% |
| Pierrefonds | 397,000 | 390,000 | 372,000 | 6.7% |
| Westmount | n/a | n/a | n/a | n/a |
| Notre-Dame-de-Grâce/ Côte-des-Neiges |
495,000 | 470,000 | 482,500 | 2.6% |
| Ville-Marie | n/a | n/a | n/a | n/a |
| Le Plateau Mont-Royal | n/a | n/a | n/a | n/a |
| Rosemont/ La Petite Patrie |
n/a | n/a | n/a | n/a |
| Laval | 360,000 | 320,000 | 331,000 | 8.8% |
| Brossard | 385,000 | 357,500 | 376,500 | 2.3% |
| Longueuil | 365,000 | 338,250 | 338,750 | 7.7% |
| Boucherville | 405,000 | 370,000 | 389,000 | 4.1% |
| Montreal | 387,429 | 360,464 | 369,250 | 4.9% |
*Type of property not covered in the sector
| Standard Condominium | ||||
| Market | Average Q1, 2012 |
Last Quarter Average |
Average Q1, 2011 |
Difference (%) Condominium |
| Beaconsfield | n/a | n/a | n/a | n/a |
| Dorval | n/a | n/a | n/a | n/a |
| Pierrefonds | 212,000 | 203,000 | 207,500 | 2.2% |
| Westmount | n/a | n/a | n/a | n/a |
| Notre-Dame-de-Grâce/ Côte-des-Neiges |
255,000 | 241,250 | 252,000 | 1.2% |
| Ville-Marie | 321,000 | 305,000 | 292,000 | 9.9% |
| Le Plateau Mont-Royal | 323,000 | 307,750 | 325,000 | -0.6% |
| Rosemont/ La Petite Patrie |
259,000 | 254,250 | 244,600 | 5.9% |
| Laval | 192,000 | 190,000 | 191,000 | 0.5% |
| Brossard | 201,000 | 192,500 | 207,000 | -2.9% |
| Longueuil | 182,000 | 168,000 | 175,000 | 4.0% |
| Boucherville | 206,000 | 204,000 | 210,000 | -1.9% |
| Montreal | 239,000 | 229,528 | 233,789 | 2.2% |
*Type of property not covered in the sector
The Royal LePage Royal LePage House Price Survey 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 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. Current figures will be updated following the end of the first quarter. A printable version of the first quarter 2012 survey will be available online on May 2, 2012.
Housing values in the Royal LePage House Price Survey are Royal LePage's evaluation of market value in each location, based on local data and market knowledge provided by Royal LePage residential real estate experts. Historical data available for some areas dates back to the early 1970's.
About Royal LePage
Serving Canadians since 1913, Royal LePage is the country's leading provider of services to real estate brokerages, with a network of 14,000 real estate professionals in over 600 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, dedicated to supporting women & children shelters and educational programs aimed at ending domestic violence. Royal LePage is a Brookfield Real Estate Services Inc. company, a TSX-listed corporation trading under the symbolTSX:BRE.
For more information, visit www.royallepage.ca or www.brookfieldres.com.
Stéphanie Panneton
Fleishman Hillard Inc.
514.866.6776, ext. 320
stephanie.pan[email protected]
Tammy Gilmer
Director, Global Communications & Public Relations
Royal LePage Real Estate Services
416.510.5783
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