A modest increase in house prices and more inventory in Montreal kicks off first quarter
MONTREAL, April 4, 2013 /CNW/ - The Royal LePage House Price Survey released today showed modest year-over-year house price gains for the Montreal region in the first quarter of 2013, and an overall increase in property inventory for Montreal.
During the first quarter of 2013, the average price of a detached bungalow rose by 0.6 per cent in relation to the average price in the first quarter of 2012, to $287,850. Standard two-story houses rose by 1.4 per cent to $392,929, and standard condominium apartments increased by 0.4 per cent to $240,044.
"Although the modest increase was predictable, the 25 per cent drop in real estate sales overall, compared to the first quarter of 2012, was greater than anticipated, especially for two-storey houses. This decline is due primarily to the market's ongoing adjustment to the new regulations adopted by the federal government last July, which reduce access to mortgage loans," said Dominic St-Pierre, Director of Royal LePage Real Estate Services for the Quebec region.
Royal LePage also notes a change in buyer profiles this quarter. "Contrary to the second half of 2012, when first-time buyers largely stayed away, since the start of the new year we have seen a decline in the numbers of first-time and repeat buyers both," Mr. St-Pierre says.
With increased inventory and decreased demand, there is now a strong possibility that home values will show a slight decline at the end of the second quarter of 2013. "The drop in the number of potential buyers and the rise in the number of homes for sale has resulted in high property inventory. In Montreal, single-family home inventory is up 17% and that of condominiums is up 24% in relation to the same period in 2012," Mr. St-Pierre points out.
As forecast at the beginning of the year, Royal LePage expects an uptick in the market in the third and fourth quarters and maintains its prediction that house prices will continue to rise in relation to 2012, although more modestly. "Low interest rates in the short- and medium-term, high consumer confidence in the Quebec real estate sector, high inventory, and relatively flat home values make the current market extremely favorable for home buyers," concludes Mr. St-Pierre.
Canadian House Price Survey for the First Quarter of 2013
Average home prices
| Detached bungalow | ||||
| Market | Average Q1 2013 |
Last Quarter Average |
Average Q1 2012 |
Difference (%) Detached bungalow |
| Beaconsfield | 331,000 | 330,250 | 307,000 | 7.8% |
| Dorval | 301,000 | 290,000 | 295,000 | 2.0% |
| Pierrefonds | 289,450 | 285,000 | 295,000 | -1.9% |
| 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 | 279,500 | 279,000 | 285,000 | -1.9% |
| Brossard | 258,500 | 256,750 | 265,000 | -2.5% |
| Longueuil | 245,500 | 249,000 | 255,000 | -3.7% |
| Boucherville | 310,000 | 290,375 | 300,000 | 3.3% |
| Montreal | 287,850 | 282,911 | 286,000 | 0.6% |
*Type of property not covered in the sector
| Standard Two-Storey Home | ||||
| Market | Average Q1 2013 |
Last Quarter Average |
Average Q1 2012 |
Difference (%) Two-storey Home |
| Beaconsfield | 326,000 | 306,500 | 305,000 | 6.9% |
| Dorval | 386,000 | 387,750 | 397,000 | -2.8% |
| Pierrefonds | n/a | n/a | n/a | n/a |
| Westmount | 524,000 | 499,750 | 495,000 | 5.9% |
| 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 |
364,000 | 334,625 | 360,000 | 1.1% |
| Laval | 389,500 | 373,200 | 385,000 | 1.2% |
| Brossard | 334,500 | 335,000 | 365,000 | -8.4% |
| Longueuil | 426,500 | 420,000 | 405,000 | 5.3% |
| Boucherville | 326,000 | 306,500 | 305,000 | 6.9% |
| Montreal | 392,929 | 379,546 | 387,429 | 1.4% |
*Type of property not covered in the sector
| Standard Condominium | ||||
| Market | Average Q1, 2013 |
Last Quarter Average |
Average Q1, 2012 |
Difference (%) Condominium |
| Beaconsfield | n/a | n/a | n/a | n/a |
| Dorval | n/a | n/a | n/a | n/a |
| Pierrefonds | 209,000 | 208,500 | 212,000 | -1.4% |
| Westmount | n/a | n/a | n/a | n/a |
| Notre-Dame-de-Grâce/ Côte-des-Neiges |
252,000 | 266,750 | 255,000 | -1.2% |
| Ville-Marie | 325,000 | 325,000 | 321,000 | 1.2% |
| Le Plateau Mont-Royal | 323,000 | 320,000 | 323,000 | 0.0% |
| Rosemont/ La Petite Patrie |
270,000 | 271,200 | 259,000 | 4.2% |
| Laval | 198,900 | 195,000 | 192,000 | 3.6% |
| Brossard | 195,000 | 189,000 | 201,000 | -3.0% |
| Longueuil | 175,000 | 177,000 | 182,000 | -3.8% |
| Boucherville | 212,500 | 210,000 | 206,000 | 3.2% |
| Montreal | 240,044 | 240,272 | 239,000 | 0.4% |
*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 90 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 first quarter of 2013. A printable version of the first quarter 2013 survey will be available online on May 3, 2012.
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.
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's & children's 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.
SOURCE: Royal LePage Real Estate Services
Sébastien Bonneau
Kaiser Lachance Communications Inc.
514.926.7120
[email protected]
Tammy Gilmer
Director, Global Communications & Public Relations
Royal LePage Real Estate Services
416.510.5783
Share this article