07 May What’s Next for Montreal’s Red Hot Real Estate Market 2021
What’s Next for Montreal’s Red Hot Real Estate Market 2021
So you’re here because you want to know what’s next for Montreal’s red hot real estate market 2021. I don’t blame you, as I myself am asking that question. There’s no crystal ball and I don’t claim to have prognosticator abilities. Based on what I see from the past year as we’ve emerged from COVID, prices have and continue to rise based on low inventory levels. Low interest rates help fuel the demand but over the past two months mortgages have risen several points from there all time lows. My advice, if you’re on the fence and waiting to purchase, waiting will cost you more both in price point and a higher mortgage rate. What we can say for certain is that over decent stretches of time, real estate has only done one thing, and that’s appreciate. Check out the chart below which only goes until 2016. Even though 2021 is not there, well, you get the picture.
Here’s a cool site that calculates and tracks the rate of inflation over the years. A 100$ in 1915 would be worth $2180.95 based on inflation. https://www.in2013dollars.com/canada/inflation/1915?amount=100
According to the site Trading Economics:
“Prices of new homes in Canada advanced by 1.1% from the previous month in March of 2021, following one of the largest monthly increases on record in February and slightly below market expectations of a 1.4% rise. Builders in most cities tied the increase in home prices to higher construction costs and shortages of construction materials. At the same time, the strong demand for new houses, fueled by lower borrowing costs and work from home restrictions, continued pushing up new home prices. As many home owners looked for larger living spaces, first-time home buyers also rushed to enter the market. Shortages of homes available on the market have also been creating competition between potential buyers, with some builders only releasing a few lots at a time. New house prices were up in 23 of the 27 census metropolitan areas, particularly in Charlottetown (3.4%). Year-on-year, new house prices jumped 7.9%, the steepest increase since May of 2007. source: Statistics Canada”
And Now For Some of Our Local Numbers Via Centris and the Barometer Report
WOWA Trusted and Transparent Average sold prices reached $514K in March 2021, a 27% annual increase Number of transactions increased moderately by 8% year-over-year Median single-family detached home prices increased by 31.8% year-over-year to $481K Median condo prices increased by 20.9% year-over-year to $347K Median plex prices increased by 8.1% year-over-year to $660K Home prices in Montreal continued to rise this quarter and reached an average sold price of $514,868, a 27% increase year-over-year.