Skip to content
Comfortable house occupancy

Comfortable house occupancy

Terry L. Kramer

Primary Menu Comfortable house occupancy

Comfortable house occupancy

  • News Real estate world
  • residential panoramas
  • elite housing
  • Real Estate
  • apartment
  • property
  • Construction
  • About Us
    • Advertise Here
    • Contact Us
    • Privacy Policy
    • Sitemap
  • Home
  • Brokers see ‘slight’ softening in Montreal housing market as mortgage rates climb
  • elite housing

Brokers see ‘slight’ softening in Montreal housing market as mortgage rates climb

Terry L. Kramer 18/07/2022 2:06 AM

Table of Contents

Toggle
  • Breadcrumb Trail Links
  • Article content
  • Advertisement 2
  • Article content
  • Article content
  • Advertisement 3
  • Article content
  • Advertisement 4
  • Article content
  • Advertisement 5
  • Article content
    • Montreal home sales drop 11% since last year: association
    • Quebec harmonizing first-home incentives with federal government
  • Share this article in your social network
  • Advertisement 1
    • Thanks for signing up!
    • Comments

[ad_1]

Breadcrumb Trail Links

  1. Real Estate
  2. News
  3. Local News

Bill 96 was also cited by one West Island broker as a possible reason why the real estate market is slowing.

Brokers see ‘slight’ softening in Montreal housing market as mortgage rates climb
Brokers say increases in borrowing rates have dented homebuyer appetite over the past few weeks. Photo by Pierre Obendrauf /Montreal Gazette

Article content

Higher borrowing costs have started to weigh on the housing market, but a major brokerage firm still expects Montreal-area property prices to end the year above where they started.

Advertisement 2

This advertisement has not loaded yet, but your article continues below.

Article content

Royal LePage on Wednesday reaffirmed its forecast for aggregate property prices in Greater Montreal to end the year 12.5 per cent higher than in the fourth quarter of 2021.

After residential real estate prices rose 13.9 per cent year-over-year to $585,700 in the second quarter, Royal LePage now sees a “slight” softening for the Montreal market in the second half, according to the firm’s quarterly house price survey.

Article content

Policymakers at the Bank of Canada are expected to announce another interest rate hike Wednesday — of up to 75 basis points — in a bid to slow red-hot inflation.

Canada’s central bank boosted rates to 1.5 per cent from one per cent last month and said it was ready to act “more forcefully” if needed. Brokers say the recent rate increases, which have translated into higher mortgage rates, have dented homebuyer appetite over the past few weeks.

Advertisement 3

This advertisement has not loaded yet, but your article continues below.

Article content

“What we’re hearing from buyers is that there’s a shift in behaviour,” Marc Lefrançois, real estate broker at Royal LePage Tendance in Montreal, said in an interview. “Because borrowing costs have risen significantly, people are having to reassess their financial capacity.”

Meanwhile, sellers “are not adjusting as fast and are still keeping their expectations very high,” Lefrançois added. “So there’s a bit of a disconnect between supply and demand. It’s probably temporary, but it’s there.”

Seasonal factors may also be affecting transactions. For the first time since the start of the pandemic, people are travelling en masse, which may be one of the reasons demand for properties in Greater Montreal slowed down in June, Lefrançois said.

Advertisement 4

This advertisement has not loaded yet, but your article continues below.

Article content

“It’s clear there’s a seasonal effect at play,” he said. “That wasn’t the case over the last two years, when most people were stuck here.”

Whatever the reason, Montreal-area properties are now taking more time to sell. That’s particularly true for homes that are listed at more than $1 million, where supply has begun to outstrip demand, Royal LePage says.

“The market is becoming more patient,” Lefrançois said. “Under $1 million, it’s still a sellers’ market. Above $1 million, you can’t expect to sell your home in one weekend, but rather in a matter of weeks, if not months. Multiple offers are also becoming less frequent.”

Even so, Lefrançois insists the softening demand isn’t a cause for concern. The strength of the real estate market “had become unsustainable,” he said.

Advertisement 5

This advertisement has not loaded yet, but your article continues below.

Article content

In the second quarter, the median price of a single-family detached home rose 18.1 per cent year-over-year to $660,400, Royal LePage data show. Condominiums saw their median price advance 11.7 per cent to $452,500. The firm’s price data includes both resale and new construction properties.

Economic factors aren’t the only reasons the real estate market is slowing — political decisions, too, are having an impact.

Sean Broady, a broker with Royal LePage Elite in Beaconsfield, said he has listed two West Island properties in the past few weeks for owners who are looking to leave the province following the passage of Bill 96, the Coalition Avenir Québec government’s controversial reform of language laws.

“The adoption of Bill 96 raised alarm bells with many West Islanders who moved here from outside the province for work or don’t have strong French skills, and are currently considering leaving,” Broady said in a statement.

Lefrançois, who is based in the Town of Mount Royal, doesn’t think the trend will spread.

“It’s probably limited to the West Island, and perhaps parts of downtown,” he said. “Not everyone can afford to leave Quebec like that due to political circumstances and find another job elsewhere quickly. There’s a cost attached to that. You probably need to have a fair bit of wealth to make that decision.”

[email protected]

Share this article in your social network

Advertisement 1

This advertisement has not loaded yet, but your article continues below.

Montreal Gazette Headline News logo

Sign up to receive daily headline news from the Montreal Gazette, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Thanks for signing up!

A welcome email is on its way. If you don’t see it, please check your junk folder.

The next issue of Montreal Gazette Headline News will soon be in your inbox.

We encountered an issue signing you up. Please try again

Comments

Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

[ad_2]

Source link

Post Navigation

Previous New! ONE-KEY™ Quiz: Test Your App Knowledge
Next Royal Albert Docks developer goes into liquidation

More Stories

Setting Up Your Leasing Office For Success
  • elite housing

Setting Up Your Leasing Office For Success

Terry L. Kramer 26/07/2024 11:25 PM 0
HDB Flat For Rent – Renting a Flat Directly From HDB
  • elite housing

HDB Flat For Rent – Renting a Flat Directly From HDB

Terry L. Kramer 26/07/2024 4:18 AM 0
A Guide to Using Marketing Automation Management Software to Engage Your Customers
  • elite housing

A Guide to Using Marketing Automation Management Software to Engage Your Customers

Terry L. Kramer 19/07/2024 8:50 AM 0
July 2025
M T W T F S S
 123456
78910111213
14151617181920
21222324252627
28293031  
« Nov    

Archives

Categories

  • apartment
  • elite housing
  • News Real estate world
  • property
  • Real Estate
  • residential panoramas

Recent Posts

  • Tools You Need for a Successful Budget Fencing Project
  • The Intersection of Art and Jewelry: A Ruby Perspective
  • Donate Land to End Poverty Now: A Path to Ending Global Poverty
  • 6 Benefits of Hiring a Funeral Director
  • Love Notes on the Wind, I Love To Walk the Land (2 Poems)

Fiverr

Fiverr Logo

Tags

A&G Real Estate Partners E&G Real Estate G Real Estate Co G Real Estate Company G Real Estate Llc G Real Estate Logo G Real Estate Utah H&B Real Estate H&R Real Estate Investment Trust H&R Real Estate Investment Trust Dividend H Real Estate Bahrain H Real Estate Logo H Real Estate School I Real Estate Lawyers I Real Estate Logo I Real Estate Management Ireal Estate Pro I Real Estate Taxes I Think Real Estate P&G Real Estate Real Estate Games Real Estate Georgia Real Estate Gifts Real Estate Greenville Sc Real Estate Groups Real Estate Groups Near Me Real Estate Hardy Ar Real Estate Hashtags Real Estate Haywood County Tn Real Estate Headshots Real Estate Henderson Tn Real Estate Hernando Ms Real Estate Highlands Nc Real Estate Horn Lake Ms Real Estate In Hernando Ms Real Estate In Memphis Real Estate In Oxford Ms Real Estate Institute Real Estate Internships Real Estate Investment Real Estate Investment Trust Real Estate Investor Real Estate Jobs Real Estate Jobs Memphis Real Estate Jobs Near Me
carrisen
putritrans

You may have missed

Tools You Need for a Successful Budget Fencing Project
  • Real Estate

Tools You Need for a Successful Budget Fencing Project

Terry L. Kramer 16/07/2025 5:24 AM
The Intersection of Art and Jewelry: A Ruby Perspective
  • Real Estate

The Intersection of Art and Jewelry: A Ruby Perspective

Terry L. Kramer 25/11/2024 2:51 AM
Donate Land to End Poverty Now: A Path to Ending Global Poverty
  • Real Estate

Donate Land to End Poverty Now: A Path to Ending Global Poverty

Terry L. Kramer 08/10/2024 1:07 AM
6 Benefits of Hiring a Funeral Director
  • Real Estate

6 Benefits of Hiring a Funeral Director

Terry L. Kramer 10/08/2024 1:40 AM
Love Notes on the Wind, I Love To Walk the Land (2 Poems)
  • apartment

Love Notes on the Wind, I Love To Walk the Land (2 Poems)

Terry L. Kramer 29/07/2024 3:57 AM 0
sanpjer-rab.com | CoverNews by AF themes.

WhatsApp us