05 Dec Montreal Market Forcast 2023
photo by ®Bonnie Meisels
Montreal Market Forcast 2023: Trends, Statistics And Potential Opportunities
The Montreal market forcast for 2023 will depend on mostly two things, the state of interest rates and inventory. It feels like it was only a few months ago that I was writing the Montreal market forcast for 2022, I honestly don’t know where this year has gone as it feels as if time flew by so fast, especially the last six months!
As we all know inflation, evidenced by the price of gas, food, and continuos rising interest rates, continue to put a huge strain on people. The question is, how long will this continue.
The Need to Adapt in a Changing Economy – Interest Rates
The Canadian and global economy is constantly changing, while certain sectors are seeing continuous growth, others are seeing decreases in demand. The Montreal market is no exception to this trend. By the end of summer, as interest rates started to climb there was a visible cool off in the overheated, multiple offer frenzy that we witnessed the past few years.
The steep rise of interest rates clearly visible in the chart below.
View the Bank of Canada’s video on monetary policy
Market Stats & Trends
The interest rates in Canada are higher than other countries, which means that Canadians have to pay more for loans and mortgages. This is a major factor for a recession in Canada. There is some recent surprising news from Crea though, Sales in October have shown a slight increase from prior months. Read the full article below
Canadian home sales took a surprising turn in October, increasing 1.3% compared to September. Newly listed properties were up 2.2% month-over-month as well.
Have a look at Crea’s MLS Benchmark price tool to see the average prices across different cities in Canada
Popular Destination Purchases For Canadians
Where are Canadians purchasing homes, and what are they looking for? We break down the data showing us where and why Canadians are buying internationally.
Best Performing Category of Real Estate – Where Are The Opportunities
PWC & the Urban Land Institute have produced a report, “Emerging Trends in Real Estate US / Canada”. It takes a look at what are the best bets for investments and development in 2023 for the US and Canadian markets.
You would expect the worst news across property sectors but according to the report data, there’s some suprising resiliency in these markets. The report covers some of the best and least performing categories in real estate. The overall attitude towards the commercial real estate outlook can be seen in this excerpt.
“It makes sense that real estate experts would take the long view given the nature of real estate assets: buildings take a long time to conceive and develop. Even simply acquiring one typically takes more time (and effort) than buying just about any other type of financial asset, and they are usually held for longer durations. Still, the willingness of so many people in the industry to look beyond some of the cyclical headwinds is striking. Says the head of advisory services for a commercial real estate (CRE) analytics firm, “The recession—if we go into one—will obviously impact some markets worse than others, but it’s just like anything else. We’ll look back in 10 years, and the prices that seem astronomical today will seem like a bargain 10 years from now.”
Smarter, Fairer Cities through Infrastructure Spending: New federal infrastructure spending provides the opportunity to replace and expand critical urban infrastructure to rebuild cities and spur new development—and address historical inequities.
Climate Change’s Growing Impact on Real Estate: The earth is getting hotter. As a result, extreme weather and climate events are becoming more frequent and more severe.
Capital Moving to the Sidelines—or to Other Assets; Give Me Quality, Give Me Niche; Finding a Higher Purpose; Rewards—and Growing Pains—in the Sun Belt; and; Action through Regulation.
Access the full report below:
Canadian Market Snapshot for October 2022 via Crea
Montreal market forcast 2023-trends, statistics and potential-opportunities, recent market trends in October 2022, reports from PWC & Urban