A new head honcho has emerged in Canada’s real estate market, premised on the Vancouver shoot up prices and Toronto’s rapidly falling market. The trajectory in Montreal sales, after a data was collected by the Montreal Real Estate Board, saw its maximum sales in the month of May.
This has superseded the last year’s sale of the same month by a rising 15%, making it its maiden score of high percentage since its financial crises in the years 2008 and 2009 respectively.
“The month of May ushered in unrivalled gains on the residential real estate market for Montreal,” said Mathieu Cousineau, president of the GMREB Board of Director.
Family homes have risen 6% in the past year alone, however, in comparison to the high double to triple digits of Toronto, it is a huge success. Nevertheless, for an area like Montreal whose housing market had been very dormant, a 6% rise in prices is most definitely a course for concern.
The city’s real estate board projected a percentage of increment to be realized in the coming year, early this past January but rescinded that statement saying its prediction was a short-sight of events and a miscalculation. The correct anticipated figure should represent a total percentage of 6. Due to its exclusion from the Canadian real estate market, Montreal was hoped to be the paradise of the foreign buyers since the Ontario government instituted the 15% foreign buyer’s tax in the Greater Ontario municipality.
A reasonable amount of well-off foreigners, most especially from France where millionaires were sighted exiting the country, had recently shown great interest in the city. On the other hand, Asian investors in Vancouver and Ontario had not been seen evading the foreign buyer’s taxes but a huge concentration of investments were found to be increasing in Vancouver, following the implementation of the tax law the previous year.
Up until now, it has been very difficult to ascertain if that change took its course since Toronto had passed the foreign buyers tax bill. Paul Cardinal of the Quebec Federation of Real Estate Boards, in a statement last month said, “High employment rates and significant influx of migrants, has propelled immensely Montreal’s ever increasing market power.”
However, with all the improvements in Toronto and Vancouver, Montreal still is more viable for business and more affordable. Consequently, in the month of May, single family homes rose to a price of $319,000 which is duly almost less than a fraction of what was recorded in Vancouver and Toronto respectively.