Montreal will most likely become a hotbed of property investment opportunities this year, if the latest numbers from the Canadian Real Estate Association are anything to go by.
The total dollar value of property transactions (seasonally adjusted) in the city went up by 18% annually in January, up to $1.63 billion. Meanwhile, once red-hot Vancouver’s shrank by 42%, down to $1.7 billion.
While this might raise alarm bells to cautious investors, the overall lower costs of living in the city – especially when compared to Canada’s most expensive markets – considerably reduce the risk of a housing meltdown.
“Much of the recent price appreciation and sales increases, that really reflects the strength of the economy,” Bank of Nova Scotia economist Marc Desormeaux told Bloomberg. “Montreal remains relatively affordable.”
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A consistently strong economy along with robust purchasing power in a prevailing environment of relatively low housing prices have also propelled Montreal’s home sales volume to a 7.1% month-over-month increase in January, the fastest month-over-month rate in a decade.
For perspective, activity in Canada’s hottest cities during the same period was just around 1.2%, while the overall national increase was at 3.6%.
Average home sale price went up by 6.3% annually, reaching $349,300. While Montreal’s price levels are still moderate compared to Vancouver’s $1.02 million median, the latter’s price levels actually fell by 4.5% during the same time frame.