INCREASE IN THE AVERAGE MONTRÉAL HOUSING PRICE SUSTAINED IN THE THIRD QUARTER
Lower inventory levels and a lack of new listings have contributed to the price increase
MONTRÉAL, Oct. 19 /CNW/ - The House Price Survey published today by Royal LePage Real Estate Services points to a sustained price increase for all housing types in Montréal over the last twelve months. A lack of new listings has led to a reduction in inventory levels and contributed to the price increase in the housing market.
During the third quarter, the average price of a detached bungalow rose 9.1 per cent to $261,656. The price of a standard two-storey home rose 8.0 per cent to $364,583 year-over-year, while the average price of a standard condominium went up 8.9 per cent to $229,025.
"There are fewer first-time buyers in the housing market as compared to the same period last year," says Dominic St-Pierre, Director, Royal LePage Real Estate Services, Québec region. "However, second and third-time buyers, who are mainly interested in high-end properties, are very active on the market. There are currently fewer buyers and fewer sellers on the real estate market. However, supply and demand are fairly similar, which explains why housing prices have been sustained."
Inventory has played a significant role in maintaining or increasing house prices. "Home prices remain steady as the inventory goes down," says Dominic St-Pierre. "In August of 2009, 8,756 homes were for sale on the Island of Montréal. We have, however, seen a small, five per cent drop in August, 2010 (8,361 homes). However, the market bounced back aggressively in September of 2010 and activity all but equalled that of the same period last year."
There have been fewer multiple offers on the housing market but selling times have remained short. "We are still seeing multiple offers, but the phenomenon has slowed considerably," says Dominic St-Pierre. "Interestingly, homes are selling faster than they did last year. For example, it takes roughly two months to sell a home at the current pace, while the usual timeframe is closer to three months. The market is aggressive and the interested buyer must decide quickly."
"Compared to last year, there has been a significant drop in sales for July of 2010," says Dominic St-Pierre. "In 2009, a large portion of the population postponed their home ownership plans due to the economic situation. The economic recovery in May of 2009 led to record sales in July and August that same year, with results being disproportionately higher than normal. The situation can be compared to the accordion principle: the real estate market expands, shrinks, and expands again."
Third Quarter House Price Survey in Canada for 2010
Average house prices
| Detached Bungalow | ||||
| Market | Q3 2010 Average |
Last Quarter Average |
Q3 2009 Average |
Detached Bungalow (%) Difference |
| Beaconsfield | 310,000 | 310,000 | 300,000 | 3.3% |
| Boucherville | 265,000 | 269,246 | 240,000 | 10.4% |
| Côte Saint-Luc | 265,000 | 251,000 | 245,000 | 8.2% |
| Dorval | 275,000 | 275,000 | 250,000 | 10.0% |
| Lachine | 267,000 | 265,000 | 230,000 | 16.1% |
| Lasalle/Verdun | 225,000 | 207,000 | 206,000 | 9.2% |
| Montréal-Ouest* | n/a | n/a | n/a | n/a |
| Notre-Dame-de-Grâce* | n/a | n/a | n/a | n/a |
| Saint-Bruno | 236,250 | 225,000 | 217,360 | 8.7% |
| Saint-Lambert | 250,000 | 244,000 | 229,500 | 8.9% |
| Westmount* | n/a | n/a | n/a | n/a |
| Montréal | 261,656 | 255,781 | 239,733 | 9.1% |
*Type of property not covered in the sector
| Standard Two-Storey Home | ||||
| Market | Q3 2010 Average |
Last Quarter Average |
Q3 2009 Average |
Standard Two-Storey Home (%) Difference |
| Beaconsfield | 392,000 | 390,000 | 375,000 | 4.5% |
| Boucherville | 326,500 | 321,500 | 289,333 | 12.8% |
| Côte Saint-Luc* | n/a | n/a | n/a | n/a |
| Dorval | 278,000 | 275,000 | 252,000 | 10.3% |
| Lachine | 277,000 | 275,000 | 240,000 | 15.4% |
| Lasalle/Verdun* | n/a | n/a | n/a | n/a |
| Montréal-Ouest | 375,000 | 374,000 | 370,000 | 1.4% |
| Notre-Dame-de-Grâce | 392,000 | 385,000 | 382,000 | 2.6% |
| Saint-Bruno | 267,750 | 255,000 | 243,984 | 9.7% |
| Saint-Lambert | 305,000 | 290,000 | 275,000 | 10.9% |
| Westmount | 668,000 | 655,000 | 610,000 | 9.5% |
| Montréal | 364,583 | 357,833 | 337,480 | 8.0% |
* Type of property not covered in the sector
| Standard Condominium | ||||
| Market | Q3 2010 Average |
Last Quarter Average |
Q3 2009 Average |
Standard Condominium (%) Difference |
| Beaconsfield* | n/a | n/a | n/a | n/a |
| Boucherville | 196,222 | 196,430 | 177,000 | 10.9% |
| Côte Saint-Luc | 237,000 | 238,000 | 236,000 | 0.4% |
| Dorval | 240,000 | 240,000 | 220,000 | 9.1% |
| Lachine | 282,000 | 280,000 | 253,000 | 11.5% |
| Lasalle/Verdun | 180,000 | 169,000 | 163,000 | 10.4% |
| Montréal-Ouest* | n/a | n/a | n/a | n/a |
| Notre-Dame-de-Grâce | 244,000 | 237,000 | 234,000 | 4.3% |
| Saint-Bruno | 187,000 | 187,000 | 177,000 | 5.6% |
| Saint-Lambert | 190,000 | 180,000 | 172,000 | 10.5% |
| Westmount | 305,000 | 300,000 | 260,000 | 17.3% |
| Montréal | 229,025 | 225,270 | 210,222 | 8.9% |
* Type of property not covered in the sector
About the Royal LePage House Price Survey
The 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 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. Current figures will be updated following the complete tabulation of the data for the third quarter. A printable version of the third quarter 2010 survey will be available online on November 5th, 2010.
Housing values in the Royal LePage House Price 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, 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.
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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