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Slowdown in Montreal Area Real Estate Market Continued in Second Quarter of 2013

Jul 12 2013 12:00AM

Marketwire

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ILE-DES-SOEURS, QUEBEC -- (Marketwired) -- 07/12/13 -- According to the real estate brokers' provincial database, there were 12,066 residential sales transactions in the Montreal Census Metropolitan Area (CMA) in the second quarter of 2013, a 9 per cent decrease compared to the second quarter of 2012, indicated the Quebec Federation of Real Estate Boards. This decrease was smaller than those registered in the two previous quarters, when sales fell by 15 and 19 per cent.

Geographically, each of the main areas of the CMA posted a drop in sales in the second quarter of the year. On the North Shore, the South Shore and in Vaudreuil-Soulanges the decrease in sales was limited to 6, 7 and 8 per cent, respectively. However, the drop was more pronounced on the Island of Montreal and in Laval, with respective decreases of 10 and 16 per cent compared to the second quarter of last year.

"The number of residential properties for sale continued to climb in the second quarter of 2013 in each of the CMA's main areas, for an eleventh consecutive quarterly increase in supply," said Diane Menard, Vice-President of the GMREB Board of Directors and spokesperson for the Quebec Federation of Real Estate Boards (QFREB) for the Montreal area. The largest increase in the number of active listings was on the Island of Montreal, jumping by 23 per cent compared to the same period in 2012. The North Shore registered the smallest increase at 6 per cent.

Market conditions relaxed in the second quarter of 2013 so that most market segments were either balanced or favoured buyers. "This easing of market conditions has resulted in more moderate price increases in the Montreal CMA," said Paul Cardinal, Manager, Market Analysis, at the Quebec Federation of Real Estate Boards. For the entire Montreal CMA, the median price of single-family homes increased by 2 per cent in the second quarter of 2013 to reach $281,625. Plexes registered the largest increase in median price at 3 per cent. As for condominiums, their median price stood at $227,000, similar to that registered in the second quarter of last year.

Provincial Real Estate Market: Fourth Consecutive Quarterly Drop in Sales

According to the real estate brokers' provincial database, the Quebec Federation of Real Estate Boards recorded 23,079 residential sales transactions in Quebec in the second quarter of 2013. This represents a 7 per cent decrease compared to the second quarter of 2012 and the fourth consecutive quarterly drop in sales.

Most of the province's Census Metropolitan Areas (CMAs) registered a drop in sales in the second quarter of the year, including Saguenay (-15 per cent), Quebec City (-14 per cent), Trois-Rivieres (-13 per cent), Montreal (-9 per cent) and Gatineau (-7 per cent). The Sherbrooke Metropolitan Area was the exception, registering a 4 per cent increase in residential transactions. Many agglomerations in the province also managed to avoid the downward sales trend, including Victoriaville (+28 per cent), Mont-Tremblant (+26 per cent), Riviere-du-Loup (+19 per cent), Saint-Adele (+13 per cent), Shawinigan (+9 per cent) and Drummondville (+8 per cent), which posted the largest increases in sales.

Province-wide, the median price of single-family homes was relatively stable in the second quarter of the year, reaching $230,000; this was only $1,000 more than in the second quarter of last year. "Price growth has slowed considerably in many areas of the province in recent quarters," said Paul Cardinal. "Properties are also staying on the market longer. The average selling time in the province, for all property categories combined, grew from 90 days in the second quarter of 2012 to 102 days in the second quarter of 2013," he added.

There were 73,554 properties listed in the Centris® system in the second quarter of 2013, a 10 per cent increase compared to the same period last year.

About the Greater Montreal Real Estate Board

The Greater Montreal Real Estate Board is a non-profit organization that brings together close to 11,000 real estate broker members. Its mission is to actively promote and protect its members' professional and business interests in order for them to successfully meet their business objectives.

About the Quebec Federation of Real Estate Boards

The Quebec Federation of Real Estate Boards is a non-profit organization composed of Quebec's 12 real estate boards and close to 14,000 real estate brokers who are members. Its mission is to promote and protect the interests of Quebec's real estate industry so that the boards and their members can successfully meet their business objectives.

About Centris®

Centris®, a division of the Greater Montreal Real Estate Board, offers technology resources to Quebec's 12 real estate boards and their 14,000 real estate brokers. Centris.ca is Quebec's real estate industry website for consumers, grouping all properties for sale by a real estate broker under the same address.

For more information on the Centris® statistics for each of the province's regions, don't miss the upcoming publication of the QFREB Barometer.



Contacts:
Chantal de Repentigny - Assistant Director
Media Relations and Special Projects
Communications and Industry Relations
Quebec Federation of Real Estate Boards
514-762-2440, ext. 130
chantal.derepentigny@gmreb.qc.ca





Source: Marketwire