While it is never good to make blanket statements about housing markets from coast to coast, with the release of the first quarter 2007 numbers, it is safe to say that all of Canada right now is showing signs of growth. That growth even extends to markets like Montreal that just two years ago were showing signs of recession.
It is impossible to compare the modest but encouraging growth in the Montreal housing market in the first part of 2007 with the incredible growth seen in other parts of Canada like Alberta and British Columbia. Even in the best of days, Quebec’s housing market was much steadier and far less prone to rapid increases or decreases. But that doesn’t mean it isn’t a good investment opportunity however, it just means that growth, as well as loss, is much more even. Imagine real estate investing without the roller coaster ride.
The current upturn in the Montreal real estate market can be directly attributed to the improved economy in the last calendar year. Experts believe that improved consumer confidence drove up average home prices in Montreal and throughout southern Quebec and that while the trend isn’t rocket-powered, it is expected to continue well into the second quarter of the year.
The best news coming out of the first quarter in Montreal was on condo sales. They were the best performing part of the market, but again, like all good news coming out of Montreal, it is tempered by the fact that the best selling condos in the city so far this year tended to be lower priced ones, with higher priced condos staying on the market for a significant amount of time.
As with most of Quebec, experts predicted at the beginning of the year a real estate slow down or even a small recession, but the first quarter numbers have proven them wrong, at least so far. In the always important category of units sold, the first quarter performed extremely well. But analysts are hesitant to predict that the rest of the year will proceed as smoothly.
In fact, it is hard to find a consensus on what the Quebec housing market is going to do for the rest of 2007 since so many experts were sure the year would start out on a sour note. Now that the market has taken a turn for the better, the Greater Montreal Real Estate Board has boldly predicted record years for condo sales and overall resales. Condo resales were up 14 percent over last year, with the average price for a single family home climbing a healthy 5 percent over the same period.
Even commercial space in downtown Montreal performed better than expected during the final two quarters of 2006. Vacancy rates in downtown Montreal plummeted from over 8 and a half percent during the middle of 2006, to just above 8 percent at the end of the year. Again, as with the housing markets, these numbers fooled most experts who were expecting a more stagnant market.
So, what does the future hold for Canada’s most culture-rich city? Well, based on the predictions of experts, no one really knows. Most prospectors have adjusted their early-year predictions of gloom to reflect the new reality that appears to be in place now in Montreal, and while no one is really predicting a record year for real estate investment, the market has taken on a friendlier glow this summer. If you watch the market carefully and make the right choices, Montreal can be an attractive real estate market to invest in throughout the 2007 fiscal year.
Warmly,
Mary Wozny
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