For years now, real estate prices in cities like Toronto and Vancouver have been labelled expensive as they continue to rapidly rise in value each year, however, for the second straight quarter, the price of residential real estate in Montreal has risen at a faster rate than in Toronto and Vancouver.
This increase is based on statistics generated by Royal LePage House Price Survey analysing the fourth quarter of 2018. The analysis was determined by taking the total cost of purchasing a home based on the average value of bungalows, two-storey houses and condo. Based on this information, there was an increase of 4.1% during the last 3 months of 2018 when compared to the last 3 months of 2017.
With this insight we saw that the average price for a two-storey house in Montreal was up by 3.5% when compared with the fourth quarter of 2017 while the average price of a bungalow was up by 5.1% and lastly the average price of a condo was up by 4.9%.
According to Royal LePage the increase in the cost of real estate was due to Montreal’s strong economy and the fact that real estate prices in Montreal have seen relatively steady growth, rather than the drastic changes and soaring prices of the Vancouver and Toronto areas.
By examining a little closer we can see that overall the number of condos sold in Montreal rose by 11.8% between the fourth quarter of 2017 and the exact same period in 2018, while the sale of two-storey houses was up by 2.6% over the same period in 2017.
The highest price increase for two-storey houses was in the South Shore, where the average price increased by 7.1%, year-over-year. On the island of Montreal, prices rose between 1% in the west and 3.7% in central Montreal. Despite this, the Greater Montreal areas saw the largest increase in condo prices, with an increase of 6%.
Royal LePage is forecasting that prices will increase by 3% in 2019.
If you were thinking about investing in Montreal real estate, now is the time, as prices are expected to rise. Always be sure to contact a Montreal based real estate lawyer to help guide and protect your investment decisions.
Of course, for any questions or concerns about protecting your cashflow and investment with a real estate purchase in Montreal, visit our website and call us for a consultation.