While April was a record-setting month for real estate in Montreal, a lack of available single-family homes made way for "dramatic" increases in prices.
Last month, 6,237 sales were recorded, setting a new record for the month, according to the Quebec Professional Association of Real Estate Brokers (QPAREB), as sales were up 231% year-over-year from the 1,882 homes sold in April 2020. Thought, it's important to keep in mind that this is increase is based on a comparison to a period (April 2020) when the pandemic caused an "exceptional pause" in transactional activities and new property listings.
Montreal remained a sellers' market in April, with the number of properties listed for sale down by 11% from a year before to 11,559.
The number of sales of single-family properties reached 3,114 in April, up 198% year-over-year, though QPAREB says this is down 4% from 2019 and represents a decline that is more significant than it seems.
At the same time, listings of single-family homes remained at an all-time low, at just 4,249, marking a year-over-year decrease of 40%.
“The number of transactions in the Montreal CMA reached a new record of 6,237 sales in April 2021 (+6% compared to 2019). This healthy growth can essentially be attributed to condominium sales,” says Charles Brant, director of market analysis.
“In this context, it is astonishing to note that sales of single-family homes are below the level recorded for the same period in 2019. The low inventory of single-family homes for sale and the dramatic increase in prices in April continue to drive the demand for condominiums, which are more affordable and have lower maintenance and renovation costs.”
On the island of Montreal, there were 2,399 sales during April, a record 17% increase over the span of a year, with condo sales driving the momentum -- a trend that's been observed since the start of 2021. The QPAREB says condominium sales reached a new record in April, with 2,466 transactions closed -- an increase of 266% year-over-year. In comparison to 2019, this is a 13% increase across the CMA.
Compared to April 2020, active listings of condominiums have increased by 22% to 5,298, with plexes also showing this upward trend, with active listings at the end of the month up 27% to 1,977.
With market conditions still heavily favouring sellers, median prices in Montreal are reaching new highs. The median price of single-family properties reached the psychological threshold of $500,000 -- up 39% year-over-year from $360,000.
Single-family properties are now selling 50% faster than they were a year ago, with these properties now selling in an average of 28 days compared to 56 days a year ago.
The growth rate of median prices also remains very high for condominiums and, to a lesser extent, for plexes with respective increases of 23% and 15%, according to QPAREB.