According to the latest APCIQ - QPAREB press release (1), sales in November 2024 saw a significant jump of +47% compared to November 2023. In the previous three months of November ‘23, ‘22, ‘21, decreases had been noted.
But from this report, it is even more interesting to note that:
“This increase in transactional activity was propelled by plexes (+61%) and single-family homes (+49 per cent), which recorded their strongest increase in 25 years for the month of November. Condominiums also performed well, posting 41 per cent growth, the second highest since the year 2000.”
As for plexes (2-5 dwellings), the number of sales and prices are up.
61% more plex sales! An impressive increase while the number of active listings is down 10%.
The average price is up 5 per cent to $770,000. This +5 per cent is low compared to single-family homes, whose price increased by 11 per cent, and condominiums by 8 per cent.
These rising prices also mean that plex buyers have to pay more to acquire a multi-unit dwelling.
This increase has several impacts, including a monthly mortgage payment at the limit of one's capacity for many, because very high interest rates must be added to the purchase price.
The increase in sale prices will also have a financial impact on property taxes, because if the value of the rental market increases, property taxes that are based on the value of buildings will also increase.
However, the rent-setting method, still used in 2024-2025, transfers the entire increase in the tax bill to tenants.
We will have to follow up, in January 2025, on the 2024 total to have a better picture of the market over 12 months’ time.
(1) https://apciq.ca/statistiques-immobilieres-residentielles-novembre-2024-montreal/