The highly anticipated 2019 Spring Outlook Real Estate Report from Sotheby’s International Realty Canada (SIRC) was released on Wednesday, March 20. The report reviews sales data compiled from the first two months of 2019 and offers insight on Canada’s luxury ($1 million-plus) condominium, attached home and single-family home markets in Vancouver, Calgary, Toronto and Montreal leading into spring.
Of significance in this spring’s report is the influence population growth is having on the luxury real estate market, combined with the current state of the federal economy and the ongoing effects of governmental intervention in home sales across top tier markets.
Excerpts that pertain to the Montreal market
Following a record-setting 2018, Montreal is projected to experience a stable spring market: sales of $1 million-plus real estate increased 6 per cent year-over-year in the first two months of 2019, while the city’s market for condominiums over $1 million soared 53 per cent. According to Brad Henderson, President & CEO of Sotheby’s International Realty Canada, Montreal’s luxury market maintains strong potential to set new records this spring.
With strong economic and political fundamentals driving local confidence and demand, top-tier sales escalated in the first two months of 2019. Overall $1 million-plus residential real estate sales (condominiums, attached and single family homes) were up 6 per cent year-over-year to 111 units sold in January and February. Two luxury properties sold over $4 million during this time, up from zero over the same months in 2018.
Significant gains in the city’s luxury condominium market point to strong spring performance. Condominium sales over $1 million rose 53 per cent year-over-year to 26 units sold in the first two months of 2019. Local end-user demand is expected to absorb the anticipated influx of top-tier condominium supply in 2019, as luxury condominium projects completed in recent years enter the resale lifecycle.
The shortage of top-tier housing supply in the city’s premier luxury neighbourhoods is hampering activity in the single family home market. In spite of healthy demand, sales of $1 million-plus single family homes in January and February 2019 stabilized from 2018’s record levels, contracting 4 per cent to 50 homes sold. Likewise, top-tier attached home sales over $1 million remained consistent, contracting a nominal 3 per cent from 2018 to 35 units sold. Diminishing days on market, bidding wars and sales above asking price are expected to persist through the spring, while modest price gains are projected across all top-tier housing types.
Montreal is uniquely positioned to gain ground as a Canadian real estate market leader through 2019. According to data released by the Canadian Real Estate Association, the value of transactions in Montreal reached $1.63 billion in the first month of the year, up 18 per cent from January 2018 and the fastest rate of growth in a decade. Investments into city infrastructure and new luxury projects continue to elevate the value of the city’s high-end housing supply, while a strong employment market and growing global interest bolster demand for conventional and top-tier housing. With a median single family home price of $320,000 in February 2019, Montreal remains an affordable premium real estate market relative to Toronto and Vancouver. These factors continue to strengthen Montreal’s position into the year.
Sotheby’s International Realty Canada is the leading real estate sales and marketing company for the country’s most exceptional properties with offices in over 32 residential and resort markets nationwide. The information contained in this report references market data from MLS boards across Canada. Sotheby’s International Realty Canada cautions that MLS market data can be useful in establishing trends over time but does not indicate actual prices in widely divergent neighbourhoods or account for price differentials within local markets.
—Sotheby’s International Realty Canada