The Montreal market remains strong, according to the House Price Survey published today by Royal LePage Real Estate Services. The survey shows higher prices year-over-year for all types of property on the Island during the last quarter. The great number of first-time buyers and the popularity of luxury properties have contributed to the increase in real estate prices.
During the last quarter, the average price of a detached bungalow rose 7.6% to $276,343. The price of standard two-storey homes rose 3.9% to $392,469, while the average price of a standard condominium was $223,789, up 8.7%.
"Currently, first-time buyers and people looking for higher-end properties are very active in Montreal, while second- and third-time buyers are being more cautious than previous quarters. Anticipation of the new rules on mortgages coming into force, combined with low interest rates and favourable economic conditions, are making first-time buyers one of the primary engines of driving the market," explained Dominic St-Pierre, Director, Royal LePage Real Estate Services, Quebec Region.
While property prices have continued to rise, the number of units sold declined by 7.3% for detached bungalows and 10.3% for standard two-storey houses. Unit sales of standard condominiums have declined by less than one percent. "Let's recall that at this time last year we were seeing the end of a record first quarter, due in part to willingness of buyers to buy before the new rules on mortgages come into force and the anticipated raise of interest rates. Still, in first quarter of 2011, the number of sales increased compared to the same time in 2008 and 2009," said St-Pierre.
According to St-Pierre, despite higher prices, the Montreal market is gradually stabilizing toward what the industry refers to as a "balanced" market, where available inventory will hover somewhere around eight to ten months. "The market should stay roughly the same in the next quarter, as inventory increases exerting less pressure on price. We're witnessing fewer and fewer multiple offers and consumers have more time to evaluate their choices and make an informed decision."
Royal LePage House Price Survey for the First Quarter 2011 Average home prices
| Standard bungalow | ||||
| Market | Average Q1 2011 | Last Quarter Average | Average Q1-2011 | Bungalow Price Change (%) |
| Brossard | $250,000 | $276,000 | $236,500 | 5.71% |
| Dorval | $285,000 | $261,500 | $256,500 | 11.11% |
| Laval | $273,900 | $268,000 | $255,000 | 7.41% |
| Le Plateau Mont-Royal | n/a* | n/a* | n/a* | n/a* |
| Longueuil | $239,000 | $229,500 | $240,000 | -0.42% |
| Notre-Dame-de-Grace/Côte-des-Neiges | n/a* | n/a* | n/a* | n/a* |
| Pierrefonds | $294,000 | $290,000 | $264,000 | 11.36% |
| Rosemont/La Petite-Patrie | n/a* | n/a* | n/a* | n/a* |
| Ville-Marie | n/a* | n/a* | n/a* | n/a* |
| Westmount | n/a* | n/a* | n/a* | n/a* |
| Montreal | $276,343 | $272,929 | $256,714 | 7.6% |
*Type of property not covered in the sector
| Two-Storey house | ||||
| Market | Average Q1-2011 | Last Quarter Average | Average Q1-2010 | Two-Storey House Price Change (%) |
| Boucherville | $389,000 | $414,500 | $395,000 | 1.5% |
| Brossard | $376,500 | $333,500 | $320,000 | 17.7% |
| Laval | $331,000 | $350,000 | $315,500 | 4.9% |
| Le Plateau Mont-Royal | $555,000 | $622,000 | $527,500 | 5.2% |
| Longueuil | $338,750 | $306,500 | $317,500 | 6.7% |
| Notre-Dame-de-Grace/Côte-des-Neiges | $482,500 | $458,000 | $517,000 | -6.7% |
| Pierrefonds | $372,000 | $341,750 | $328,750 | 13.2% |
| Rosemont/La Petite-Patrie | n/a* | n/a* | n/a* | n/a* |
| Ville-Marie | n/a* | n/a* | n/a* | n/a* |
| Westmount | n/a* | n/a* | n/a* | n/a* |
| Montreal | $392,469 | $393,906 | $377,781 | 3.9% |
*Type of property not covered in the sector
| Standard Condominium Unit | ||||
| Market | Average Q1-2011 | Last Quarter Average | Average Q1-2010 | Standard Condo Price Change (%) |
| Boucherville | $210,000 | $196,000 | $184,750 | 13.7% |
| Brossard | $207,000 | $182,000 | $185,000 | 11.9% |
| Laval | $191,000 | $189,800 | $170,000 | 12.4% |
| Le Plateau Mont-Royal | $325,000 | $310,250 | $285,000 | 14.0% |
| Longueuil | $175,000 | $176,000 | $162,250 | 7.9% |
| Notre-Dame-de-Grace/Côte-des-Neiges | $252,000 | $240,000 | $223,750 | 12.6% |
| Pierrefonds | $207,500 | $213,000 | $199,500 | 4.0% |
| Rosemont/La Petite-Patrie | $244,600 | $249,000 | $237,000 | 3.2% |
| Ville-Marie | $292,000 | $300,500 | $288,000 | 1.4% |
| Westmount | n/a* | n/a* | n/a* | n/a* |
| Montreal | $233,789 | $228,506 | $215,028 | 8.8% |
*Type of property not covered in the sector
About the Royal LePage House Price Survey
The Royal LePage House Price Survey is the largest, most comprehensive study of its kind in Canada, with information on seven types of housing in over 250 neighbourhoods from coast to coast. This release references an abbreviated version of the survey which highlights house price trends for the three most common types of housing in Canada in 90 communities across the country. A complete database of past and present surveys is available on the Royal LePage Web site at www.royallepage.ca. Current figures will be updated following the complete tabulation of the data for the first quarter 2011. A printable version of the first quarter 2011 survey will be available online on May 6th, 2011.
Housing values in the Royal LePage House Price Survey are Royal LePage opinions of fair market value in each location, based on local data and market knowledge provided by Royal LePage residential real estate experts.