REAL ESTATE 2013 MONTREAL

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                                                                                    

patricia@patricialallier.com

www.patricialallier.com

Statistical source: CIGM  25/01/13 

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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