Montreal and the province can expect to see record-setting residential sales in 2018, according to a new report from the Québec Federation of Real Estate Boards (QFREB).
The number of sales for 2017 is expected to reach a new high of 82,600 this year (up 6% from last year. QFREB says that it expects to see sales increase by at least 3% in 2018.
“Despite the anticipated rise in interest rates and the additional tightening of mortgage rules – this time for mortgages with a loan-to-value ratio of less than 80 per cent – the demand for housing will be strong, stimulated by job creation, migration and consumer confidence,” said Paul Cardinal, manager of QFREB’s market analysis department, in a release.
The QFREB predicts that residential sales in the Montreal metropolitan area will increase more significantly than the rest of the province.
In 2017, sales are expected to hit an 8% increase, and in 2018 QFREB expects another 5% increase.
“For the first time in history, we should surpass 45,000 sales in the city,” said Cardinal. “The condominium segment will be particularly strong.”
Over the past several months, condo sales in Montreal have increased. In September– one of the hottest months for Montreal real estate in 2017– condo sales saw an 11% increase compared to September 2016.
Montreal is also expected to emerge as the next Canadian real estate hot spot. Montreal’s $1 million-plus real estate sales of condos and attached and single-family homes 60% year-over-year in July and August.
The QFREB expects Montreal to see a strong growth in prices as well. “It is a seller’s market for single-family homes and plexes, while conditions are more balanced for condominiums. This results in more upward pressure on prices and faster selling times,” said QFREB in the report.
The QFREB says the hot real estate market is due to Quebec’s job market gaining “exceptional momentum” over the past 24 months. Net migration and the number of non-permanent residents are also seeing a steady increase. And consumer confidence in Quebec is at a 15-year high.