How’s the market: June & July 2010

Catching up with the market updates. August’s market report is not out yet, and while we wait for the new numbers, here is a quick review on how the previous months performed: In terms of sales and active listings, the months of June and July were quite similar.

Compared to 2009, both months had a decrease in sales.

June’s total sales were down by 19%, while July’s decrease was 26%.
There was also a decrease of the active listings during these two months: 10% less for June and July followed with -7%.

Regardless of the slow market, the median prices of went up.

In June, median prices for Single Family Homes, Condos and Plexes* increased by 8%.
July median prices shows an increase of 5% for Single Family Homes, 8% for condos and 9% for Plexes*

* Plexes (2 to 5 dwellings)

View the complete reports: June 2010 | July 2010. Source: GMREB

Condos Stand Out in the First Quarter of 2010

Overall residential sales in the Montréal Metropolitan Area increased by 46 % in the first quarter of 2010 compared to the same period last year, and by 10% compared to the first quarter of 2008. In the first three months of the year, 3,865 condominiums were sold, up 13% compared to the previous record set in the first quarter of 2008.

Sales of single-family homes and plexes increased by 8% and 13%, respectively, compared to the first quarter of 2008, which was before the start of the last recession.
In terms of prices, the median price of single-family homes reached $243,000 in the first quarter of the year, an 8% increase compared to the first quarter of last year.

Condominiums registered an 8% increase to reach a median price of $200,000. The median price of plexes, which stood at $371,000, registered the largest increase, growing by 10% compared to the first three months of 2009.

“Lots of activity on the resale market as well as an increase in prices show that Montréal is a good place to live and a good place to invest,” concluded Michel Beauséjour.

Source: GMREB- [Greater Montreal Real Estate Board]

2009 Real Estate Market – Good Performance

December’s stats came out early this month. The Greater Montreal Real Estate Board (GMREB) often gives us monthly numbers and this time, they also have some information on how the year did in general, compared to 2008.

We had a slow start last year. The market didn’t show serious signs of activity until late spring. Of course, they didn’t mention that until now, but we could all feel it.  Glad that slow time is over.

According to the GMREB, in 2009 prices increased a 5% more than in 2008. There were also more sales- houses lead the way this time, as opposed to condos. And finally, the month of December was very extremely active. There was an increase 0f 67% more sales than in 2008.

So far this year looks promising. The first time buyer’s season is approaching soon. Properties are getting ready to enter the market. Make sure you don’t get left behind.

Always happy to answer your real estate questions.

Happy monday to all!

RE/MAX Housing Market Outlook 2010: Greater Montreal

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. There is more to read >>

GMREB Video: Montréal Sales Surpass Record-Breaking 2007 Levels

Chief Executive Officer of the GMREB, Michel Beauséjour introduces November 2009 sales statistics versus Nov. 2008 and 2007. As he explains, they have compared last months sales with two years( 2007 and 2008), instead of just one because of the recession last year there was a drop of sales by 31% (remember the awful sales report from November last year?). Obviously, last year we were on the red, the minus, the negative. It wouldn’t be fair to compare a good year like this one with a slow one like 2008. Makes sense. So the best year before that was 2007. And according to this report, (and the point of my whole rambling) last month we’ve surpassed the Nov 2007 mark with a 4% increase. Not bad at all.

PS: If you receive your articles via RSS or email, there is a chance that the video above won’t show up. To view it, click on the permalink of this post.

Montreal Real Estate Market: Exceptionally busy this summer

As the monthly stats keep on coming, I realize now that it was not just me having an extremely busy summer.
Usually, homes sales are slow during the summer months. A lot of agents as well as sellers, take the time off to enjoy their vacations to come back to the market during the fall time.

Well, not this year.

“Even though real estate sales are usually slower during the summer because people are more in holiday mode, this year has been a real exception. July’s real estate market was very active, meaning the market is doing a good job of catching up after a slow start this year,” said Michel Beauséjour, FCA, Chief Executive Officer of the GMREB.

You can definitely say we had a slow start. On my end, a lot of the transactions didn’t start until April-May and has not stopped just yet. I’m still trying to squeeze in a mini vacation between sales.

Ok, back to the subject: According to the GMREB July stats for 2009, compared to 2008 are the following:

Increase in sales

• Condominiums: 20%
• Houses: 18%
• Plexes: 19%

Prices continue to climb

The median price of single-family homes went from $230,000 in July 2008 to $246,000 in July 2009, an increase of 7 % and plexes increased by 3%. Condo prices remained the same. And let’s hope they stay that way, hard enough to find a good condo downtown for less than 350,000!.

To get the complete report, visit the GMREB website. And if you’re looking for a condo downtown, and need a good agent to represent you, call us, or drop us a line!

To all of you, have a great weekend!

Important factors for first-time homebuyers: Affordability and job security

According to a report released today by Royal LePage Real Estate Services, Canadians who are considering purchasing their first home are primarily motivated by lower home prices and very low interest rates, but some require confidence in the economy and their employment prospects before they will enter the market.

• 86% of potential first-time buyers say low interest rates make them more likely to purchase a home;
• 81% cite lower housing prices as a motivating factor;
• 76 % cite job security;
• and 64% say a stable economy is an important factor in their decision to buy.

Potential buyers were asked to rank their top incentives for purchasing a first property. These are the top four incentives found, in this order:

1. Lower home prices
2. Lower interest rates
3. First-Time Home Buyers’ Tax Credit.
4. The recently introduced Home Renovation Tax Credit for 2009 was cited by 42 per cent of potential first-time buyers as either ‘very likely’ or ‘somewhat likely’ to impact their purchasing decision.

“Our survey demonstrates how important affordability factors such as interest rates and house prices are in stimulating demand.” Said Phil Soper, president and chief executive of Royal LePage Real Estate Services.

Across the country, potential first-time homebuyers agreed that affordability was their top consideration, however the survey also revealed differences amongst buyers in various regions of Canada. Read more

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