RE/MAX Housing Market Outlook 2010: Greater Montreal
December 11, 2009 by Deyanira Bautista
Filed under Featured, Montreal Market Report
You might remember last week’s RE/MAX 2010 Market Forecast, where we briefly quoted some of the report’s outlook for the Canadian Market. Today we’ve outlined the Greater Montreal market forecast, taken from the same report. So far the news are excellent and there is a lot to expect from the new year. The following text is one big quote. I’ve highlighted the most important areas for a quick & easy reading. To view the complete report (PDF file) click here.
Greater Montreal Market 2010- According to RE/MAX:
Despite a slower than usual start to the year, the Greater Montréal’s residential real estate market continues to experience strong upward momentum.
Spurred by rock-bottom interest rates and growing consumer confidence levels, home sales are expected to top 43,000 by year end, a 5% increase over the 40,916 units sold in 2008. Average price is forecast to escalate further, recording a 3% increase to $266,000 in 2009, setting a new record for the city.
“Demand for homes on the Island of Montréal remained brisk for much of the year, fuelled in large part by a continuous influx of first-time buyers.”
The city boasts one of the highest percentages of renters in the country, many of whom chose to venture into the market to take advantage of favourable market conditions this year.
- Affordability was key, with entry-level purchasers seeking product ideally priced between $200,000 and $250,000.
- Single-family homes in the suburbs represented the best value for the dollar, with a 1,200 sq. ft. home on a 5,000 sq. ft. lot starting at $235,000.
- Semi-detached homes could be purchased for even less, starting at $175,000 to $200,000 in areas like Rosemere.
- Condominiums—an affordable alternative in the centre of the city—have also seen an upswing in sales, particularly in recent months, as the oversupply of units is absorbed. Inventory levels were down in virtually every community by year-end.
With housing values steadily increasing over the past decade in Montréal, real estate has proven to be a solid, long-term investment. Given the volatility in the stock market over the past 18 months, more and more investors in the Montréal area are turning to tangible investments like bricks and mortar.
Consumer confidence in the province overall has held up relatively well, with retail sales and home prices performing above the national average. Nonresidential construction also continues to support the provincial economic underpinning, with a five year $42 billion public infrastructure spending program in place.
Montréalers continue to reaffirm their faith in real estate and 2010 will be no exception. The number of homes sold is forecast to climb further, rising another two per cent to 44,000 units by year-end 2010.
Housing values will continue their ascent, with average price poised to break yet another record—settling in at $272,000. Consumer confidence should serve to bolster housing activity, especially with improvement in economic performance throughout the year.
Look to first-time buyers- as well as move-up purchasers- to act in tandem, driving the market, particularly on the Island of Montréal.
“Prices in the Top-End are expected to stabilize further…”
As a result, giving the green light to purchasers in that exclusive segment of the market priced in excess of $600,000. Traditional luxury strongholds such as Westmount, Outremont, and Mount Royal should experienced more balanced market conditions.
Given strong demand and a limited supply of affordable product, the multiple offer is expected to re-emerge, although not to the extent seen in 2006 and 2007. Investors will also take part in the rebound, sparking demand for income-producing properties such as four, six, and eightplexes. While availability is limited, this type of housing is the investment of choice for many who choose to live in one unit and rent the remainder.
Source: RE/MAX via Newswire. View the complete report (PDF file).
Posted by: Deya Bautista - Affiliated Real Estate Agent working as part of the McGill Immobilier team. Specializing in condos and revenue property in the metropolitan area of Montreal. For buying or selling contact Deya at: 514.917.7889 
The market is wildly inflated. Remax is pushing crack in this article. The average home price in B.C. is roughly double the national average. However salaries in B.C. are no greater than and probably less than other major centers such as Toronto, Calgary and even Montreal where the prices are much less.
The current low interest rates are merely sucking in the buyers of 2010 and 2011 to get into the market now. When rates go up – which they will – the bubble will burst and the values will drop at least 20% and perhaps lower.
The closest market to Canada is actually Australia because we have similar banking and government mortgage systems. The Australian government has already started to raise rates to prevent another bubble. However the Harper government appears more concerned about electability than dealing with economic fundamentals. Eventually something has to give and when it does there will be pain.
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hi,
I am planing to buy a house in Candiac, the south shore, . I just wanted to know what whether you know the area and whether you have any thoughts…
It is so funny to read those outlooks for a few years. The only thing I've learn that all those experts have no idea what is going to happen. You can just use a random generator in excel .. strange why so few people predicts ever prices to go down when the history shows consecutive years of decline as well :-)
Outlooks are just that …outlooks. What all buyers should do in this market before buying is be comfortable and in a position to pay 5 to 6% intersest on their mortgage when they renew. Don't over extend and plan for a rate increase. If your are buying a family home and intend to live their for several years don't be too concerned with forecasts , you will be fine in the long run. However, if you are a speculator, you better have a great sense of timing.
Must definitely. The rates will go up for sure.
As long as it doesn't predict another real estate bubble burst. I just came from buying my first place so, sure I want to hear what is going to be like for next year. Just in case the rates are increasing.
Buy, Buy, Buy, Buy………. if you have the money.
I am happy to hear that that interest in income producing properties will be in demand. I own a four-plex and I have my mortage paid by my three rents and I live rent free. I could not be happier. I have never been wthout a rent and very lucky I have always had good tenants.
does anyone know what a multiple offer is? (it is mentioned in the last paragraph)
thx
Multiple offers is when a property for sale gets more than one person making an offer to purchase simultaneously, in this case, the seller gets to pick and choose which offer is the most appealing to him.