Premised on the evidently slowing down of leading estate markets of Toronto and Vancouver, the Quebec federation of real estate boards declared that Montreal is well on its way to experience its largest home price growth since 2010.
Montreal area residential property appraisals are on track to mature by 6% in 2017, up from a January forecast of 1%.
“We are not as crazy as Vancouver and Toronto as far as price increases are concerned,” Century 21 vision agency executive Eric Goodmar told Bloomberg. ”But activity is pretty very impressive.”
The median cost for a single family home in the city is anticipated to increase to $312,500, yet is a relative deal as the figures are roughly one third the levels in Toronto and Vancouver. Sale volumes have also been projected to surge by 4% year over year, up to a seven year high of 41,500 property transactions.
The Montreal market has so far been freed from the overheating that has led to the B.C and Ontario governments imposing their own foreign buyer’s tax. Desjardins group chief executive officer Guy Cormier contended that Montreal has no need for such charge as there is no real estate bubble forming in the city at the moment.
Data from CMHC demonstrated that the percentage of foreign home buyers in Montreal stood at 1.3% by the end of 2016, a number that CMHC officials said might hold up for some time.
“We presume the number will remain close to 1.5% in the short term,” CMHC principal of market analysis (Montreal) David L’Heureux said.
The city’s standing might prove enticing to those fleeing the Toronto and Vancouver markets, however.
“I would not be astounded if Montreal becomes the new target for foreign capital investing in residential real estate,” according to Cynthia Holmes, professor of real estate management at Ryerson University in Toronto.
Montreal is on the threshold of becoming one of Canada’s most rewarding housing markets.