With the leading housing markets of Vancouver and Toronto which appear to slowdown, it was announced by the Quebec Federation of Real Estate Boards that Montreal is on the verge of undergoing its biggest home price growth since 2010.
Despite the fact that a 1 per cent growth was projected earlier in January, Montreal-area residential property valuations are expected to grow by 6 per cent in 2017.
“We aren’t as crazy as Vancouver and Toronto as far as price increases,” Century 21 Vision agency executive Eric Goodman said. “But activity is pretty good.”
The average cost for single family-homes in Montreal is anticipated to increase to $312,500, which is still quite a good deal, as the price is about one-third the levels in Vancouver and Toronto. The quantity of sales is also expected to grow by 4 per cent year in year out, for a 7 year high of 41,500 property deals.
So far, the Montreal markets have been free from the overheating that has resulted to self-foreign buyers’ taxes imposed by the governments of Ontario and B.C.
Guy Cormier, who is the executive officer of the Desjardins Group, has indicated that Montreal has no need for this type of levy, since there is “no real-estate bubble forming” in the city at this time.
CMHC released data showing that the fraction of foreign home buyers in Montreal was at 1.3 per cent towards the end of 2016, a number which CMHC officials suggested will stand for a certain period.
The principal of market analysis in Montreal, David L’Heureux said “we expect the number to remain close to 1.5 per cent in the short term”.
Nevertheless, the actual status of the city will surely be too attractive for those fleeing the Vancouver and Toronto markets to resist.
Cynthia Holmes, professor of real estate management at Ryerson University in Toronto said “I wouldn’t be surprised if Montreal becomes the new target for foreign capital investing in residential real estate”.