Montreal real estate prices reached a record high in October, with the average Montreal Island property price now almost $500,000.
The latest data released by the area’s real estate board showed that Montreal real estate in the city and suburbs rose by at least 13 per cent year-on-year in October, when compared to October 2016.
Single family homes saw price increases of 10 per cent to nearly $630,000, condos were up 14 per cent to more than $370,000 and buildings with two to five units grew 15 per cent to $583,801.
However, despite the rises Montreal real estate is still seen as a bargain when compared to average property prices of over $780,000 in Greater Toronto and over $1 million in Greater Vancouver.
It is thought that interest from overseas property investors moving away from the 15 per cent foreign buyer taxes in Toronto and Vancouver may be helping to fuel the boom in Montreal real estate.
However, foreign interest is not the only reason for the upsurge.
Paul Cardinal of the Quebec Federation of Real Estate Boards attributed monthly housing gains this year to strong job creation, consumer confidence, and low unemployment, as well as foreign migration.
With consumer confidence reaching a 10-year high, people are viewing it as a good time to make a major purchases such as property.
Mr Cardinal said: ‘Employment is on fire in Montreal. They [consumers] have confidence that it’s a good time to buy because of their expectation about their job, about their revenues, about interest rates and about the market itself.’
The number of properties sold in October increased by seven per cent to 3,270 making it the busiest October for eight years.
Properties are also selling quicker, with single family homes on the market on average for 78 days, almost two weeks less than a year ago.
Duplexes spent an average of 81 days on the market, three days fewer than last year. Condominiums took the longest to sell at 103 days, but that was 17 days fewer than in October 2016.
Mathieu Cousineau, president of the Greater Montreal Real Estate Board, commented: ‘The single-family home and plex markets are becoming increasingly favourable to sellers, as selling times for these property categories are falling.’
This could be the time to consider investment in Montreal real estate, as it seeks to catch up with the Toronto and Vancouver areas.