According to a recent poll conducted by Angus Reid, three-quarters of homeowners in Canada are worried about their mortgage renewal. In Montreal, this concern is especially relevant as the real estate market is facing unique challenges in the first quarter of 2023.
Montreal Real Estate Market Faces Challenges in Q1 2023
The latest data from APCIQ shows that the Montreal condo market is experiencing a decline in sales compared to the same period last year. The number of condo sales in Montreal dropped by 10% in Q1 2023, with only 3,500 units sold compared to 3,900 units in Q1 2022. This decline in sales can be attributed to a lack of inventory, as there were only 6,500 condos listed for sale in Q1 2023, down from 7,500 units in Q1 2022.
- Montreal condo sales dropped by 10% in Q1 2023, with only 3,500 units sold compared to 3,900 units in Q1 2022. The lack of inventory is seen as a factor in this decline. (Source: APCIQ via MTL Blog)
- Despite the drop in sales, the average selling price of a Montreal condo increased by 8% in Q1 2023, reaching $372,000, up from $345,000 in Q1 2022. The high demand and low supply of listings are considered contributing factors to this rise in prices. (Source: APCIQ via CNN)
- The Montreal real estate market has been impacted by the COVID-19 pandemic, with some buyers opting for larger homes outside of the city. However, some experts believe that the market will recover as the pandemic eases and interest rates remain low. (Source: Bloomberg)
- Montreal is not the only Canadian city facing challenges in the real estate market. Vancouver and Toronto are also experiencing declining sales and rising prices, prompting concerns about affordability and the impact on the broader economy. (Source: Bloomberg)
- Variable and fixed mortgage rates have soared to the mid-single digits from ultra-low levels in just over a year in the wake of the Bank of Canada’s aggressive tightening campaign. This has had a more immediate impact on variable rate mortgage holders, whose payments have increased after hitting their trigger rate. (Source: Bloomberg)
- Many economists and investors are now expecting the Bank of Canada to largely keep its benchmark rate unchanged this year or hike one more time, a stark contrast to previous market expectations that the Bank of Canada could start cutting rates this fall. (Source: Bloomberg)
For Montreal homeowners facing mortgage renewals or prospective buyers looking to enter the market, it is important to stay informed and seek guidance from professionals who can help navigate the current market conditions. For more, on the favorite real estate.
“The wise young man or wage earner of today invests his money in real estate.” – Andrew Carnegie