Sales transactions keep climbing upward, especially in the condo market
The inventory of properties in the Greater Montreal Area increased over 13 months, giving buyers more to choose from and allowing the market to become more balanced.
However, in June, there was a five-per-cent increase in the overall number of sales transactions over June 2010, which marked the first increase in more than 14 months. Condominiums increased by 12 per cent, followed by the single family home at one per cent and the plex at three per cent. The north shore, Vaudreuil-Soulanges and Montreal increased, while the South Shore and Laval decreased. Toward median sale prices, sellers still experienced an increase across all categories of properties.
In July, there was a six-per-cent increase in the overall number of sale transactions over July 2010. Similarly modest sale increases were reported for single-family and plex buildings, but condos increased by 19 per cent, or as much as 18 per cent in Montreal.
So, do the results of June and July indicate a swing in the market toward a stronger seller’s market? Not necessarily. In June 2010, sales fell by 20 per cent compared with June 2009, so it was easier in June 2011 to demonstrate an increase over June 2010. However, year-to-date sales better represent those of 2007 and 2008, which were prosperous for the market in Montreal and favoured the seller. While there are two months of evidence indicating an increase in sale numbers, it depends on the neighbourhood and type of property. In Montreal in 2010, there were more than two times as many condo transactions as for single-family homes. Condo sales on the island of Montreal represented more than 77 per cent of the total condominium sales in Quebec, making this an urban phenomenon. Following closely behind Montreal was the North Shore at 22 per cent and Laval at 15 per cent.
Condos limit urban sprawl, reduce the number of cars on the roads and reduce greenhouse gases. They are a good investment, as they represent a lifestyle favoured by young people and the elderly who appreciate low-maintenance, hassle-free lifestyles.