A recent national survey revealed that prices of real estate properties in Montreal ballooned in 2019 beating Vancouver and Toronto. In downtown Montreal alone, prices of the condominium units have increased to 13.5 percent from the previous year or an average of $805 per square foot. The significant price surge cannot be considered as higher than Montreal’s counterparts, but it could be a sign that the city is drawing its level while the growth rate is outrunning other major cities in the country.
Comparative Study on Price Growth in Canadian Real Estate
Century 21, a Canadian real estate giant has gathered data from across Canadian real estate boards to show how the price increase fare in major cities in the country. Here’s the result:
- Condo prices upturn in Toronto falls below 10 percent based on its price of $1083 per square foot.
- Condo rates in Vancouver are under 4 percent of its price of $1192 per square foot. This is far from its status as one of Canadian cities where you can find the most costly condos.
The Pandemic Impacted the Search for Affordable Housing & Home Office
Todd Shyiak, Century 21 vice president of operations, stressed the importance of comparing condo prices. Townhouses and detached homes showed an explosive price surge. Prices of detached houses in southwest and downtown Montreal also showed a remarkable increase to $958 per square foot or 40 percent rise in the last year. Angela Langtry, Century 21 broker described the situation as wild. She said that the pandemic has impacted property demand. During this time, people while confined in the comforts of their homes had extra time to contemplate about their current abodes, and they want pools. Langtry has observed that sales skyrocketed after a hiatus during springtime, which is at the height of the pandemic. Real estate experts revealed that the health crisis drove people to suburban areas for hunting inexpensive homes and space for working at home. Shyiak added that since the COVID-19 outbreak, the majority of housing needs have quickly changed as people do not need to travel to their office daily. This could mean that condos will lose its demand in years to come as people want to have their own home.
Renters Falling out Feared Amidst Rental Rate Increase
In the face of low vacancy rates and volatile real estate market that are felt all over Montreal, housing advocates fear the possibility of rental rates to escalate. Housing advocate Darby MacDonald summed up that rental rates go higher as mortgages rise. Renters are the end losers as property buyers purchase costly housing. In a new study conducted with regards to RCLALQ online listings, it showed that Montreal showed highest rental rates compared to other places in Quebec. The listings consisted of properties in municipalities and metropolis within Quebec province. Maxime Roy-Allard, housing advocate spokesperson, opined that to allay fear of impending high rental rates in Montreal, government intervention is needed, if none, low rental fee will be part of history. Roy-Allard also said that at the onset of the pandemic and the ever-changing housing needs alongside could somehow liberate people from skyrocketing rental cost within Montreal. But sad to say, the pandemic, according to him, did the opposite thing.