January, a good indicator!
Since
the collapse of the American real estate market in 2008 and 2009, we’ve
observed many fluctuations. Some years have started slowly, some have peaked at
the end, and the Quebec real estate market – more specifically our sector, Old
Montreal – has also had its ups and downs. January has often been a good
indicator of the market’s overall annual performance. Let’s look at the
situation in 2013.
Since the beginning of the
year, no less than five transactions have been made in Old Montreal on the
resale market. When comparing that to 2012, when 16 transactions were made
during the same period, we might believe that a slowdown is occurring. But
there is a caveat – the many construction starts delivered over the last two
years distort the data. We have to wait till the end of summer, once delivered
projects are completed, to really grasp their impact on the resale market. So
it’s still too soon to talk about a slowdown, stability or progression.
However, we can already draw a few interesting conclusions.
Revealing
data
Although we recorded three
times as many transactions last year, we observe this year a considerable
appreciation of the average selling price, i.e., $485,000 compared to $335,214
in January 2012, an increase of over 44%. No doubt a few transactions of
high-end units have weighed in the balance. Several factors can explain this
increase: resurgent confidence, greater purchasing power, interest rate
stability, and the sustained presence of foreign investors. If we compare the
above numbers to the year-end’s (November and December 2012), when 43
transactions at an average price of almost $428,000 were made, we can
practically state that market uncertainty is behind us. Of course, we’re still
far from the peaks recorded in January 2010 (13), 2011 (15) and 2012 (16) for
the number of transactions, or in 2008 for the average price ($651,666), but
the statistics are encouraging. All the more so because the economic recovery
of our neighbours to the south appears well underway.
High-end
It’s also interesting to note
that over the last three years, no less than 21 transactions involving units
valued at $1M and up have been made in our sector. And the largest transaction
was made in 2012 in the Old Montreal – for $2.65M. No doubt about it: the
resale market is still a major factor in the real estate equation in Old
Montreal, a sector that remains among the most highly prized in our city.
Patricia Lallier
Certified Real Estate Broker
Statistical source: CIGM 25/01/13
If your property is registered with another
broker, please hand this letter to a friend.
Immeuble International II agence immobilière situé à Montréal.Courtier immobillier depuis 1981 Patricia Lallier est la propriétaire de l'agence immobiliere et fondatrice de l'entreprise. Pour vendre ou acheter dans les secteurs du Vieux Montréal, district Griffintown, Centre-Ville de Montréal ou Westmount
