CANADA - If you've followed the market recently, you know that affordability is a major issue. However, despite this, prices for new homes have stabilized. There are now record numbers of new homes under construction in Metro Montreal. This means that there will be more competition for real estate deals.
Sales Slowdown In The Laurentides In The First Quarter Of 2023
After a year of strong growth, the Laurentides region saw its real estate sales slow in the first quarter of 2023. In Saint-Hyacinthe alone, sales dropped by 13 percent. This slowdown was partly due to tight market conditions across the board, which continued to put upward pressure on prices. Overall, single-family home prices in the region increased by more than 20 percent in the first quarter.
However, despite the slowdown in the first quarter of 2023, sales continued to reach record highs. Sales in the Granby agglomeration declined by 16 percent. Meanwhile, sales in other areas of the region saw a much slower decrease. Despite the decrease in sales, the median price of a condominium in the region fell to $301,500, from $347,700 in the same period last year.
The decline in sales is primarily due to fewer homes on the market. While the number of sales fell, prices for single-family homes increased by eleven percent. This increase was more prominent in Rouyn-Noranda than in Val-d'Or.
Median Price Of Single-family Homes Jumps In Sainte-adele And Sainte-agathe
Median home prices have jumped significantly since the beginning of the year, and this trend will likely continue into 2023. The housing market in these areas began to heat up in 2021 but is expected to cool off slightly in 2022. According to Zillow, the median price of single-family homes in Sainte-Adele and Saint-Agathe will rise to $370,500 by 2023.
This increase is partly due to an increase in demand for waterfront homes. The price of waterfront homes has risen by nearly 10% over the past three months, despite a halt in sales in the last three months. The decrease in sales has been partly attributed to a lack of interest from buyers in the downtown core. However, the slowdown in the real estate market is also due to the resurgence of properties outside major urban centers.
While official statistics are scarce, it's clear that the housing market in these areas is tightening. While it's true that the region has been experiencing a housing crisis, brokers in the Laurentians say that good-located properties are selling quickly. In some cases, bidding wars can exceed the asking price.
The new government has listened to residents' and local officials' concerns. They have agreed to create an advisory committee to direct the economic development of these regions. However, it's important to keep in mind that the new structure is not completely clear. The first version of the advisory committee wanted to create a regional organization with a central body, such as Connexion Laurentides. However, the government heard the concerns of local officials and has now reformed the structure of the advisory committee to resemble a mini-council of administration.
Increasing Competition For Real Estate Deals
As the economy continues improving, the real estate market in Montreal is expected to grow. According to the Conference Board of Canada, Montreal will see a 5% GDP growth this year and another 4.2% growth in 2022. These growth rates increase market business pressure, forcing companies to manage their portfolios better. The residential market is expected to continue doing well in the coming years, particularly in single-family detached homes, townhouses, and downtown condos. As such, builders are breaking ground and seeking acquisitions in the market for future projects.
The lack of supply in Montreal has created a competitive market. With interest rates rising, home buyers may need to rethink their strategy and search for new properties. As a result, developers are racing to meet demand. The availability rate for industrial space in Montreal is below 2%, the lowest in the past 20 years. Additionally, rising rental rates have fueled the demand for industrial property in Montreal.
Another growing industry in Montreal is the biotechnology and life sciences sector. The Government of Canada is committed to supplying the biotechnology and life sciences sector with adequate supplies of their products. For example, the government continues to support the development of vaccines.
