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.
“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, selling or renting contact Deya at: 514.917.7889
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