Property prices increase modestly as inventory continues to accumulate
MONTREAL, Jan. 14, 2015 /CNW/ - The Royal LePage House Price Survey and Market Survey Forecast released today indicates that the Montreal real estate market did not perform as well as expected in the fourth quarter of 2014, as rising inventory limited price increases in the region.
Prices levelling off
"While the Montreal market had shown signs of recovery in the third quarter of 2014, property prices levelled off in the fourth quarter," said Dominic St-Pierre, Director, Royal LePage, for the Quebec region. "Year-over-year, the average price of a standard two-storey home remained stable, increasing 0.2 per cent to $402,321. As a result of growing inventory, the price of condominiums saw a minor increase of 1.1 per cent to $241,983. Meanwhile, over the same period, the price of detached bungalows appreciated by 2.1 per cent to $297,300.
Inventory on the rise
"It would have been expected, and even healthy, for the market to see a slowdown in the number of listed properties in the fourth quarter, but in many cases, we observed a significant increase in the number of properties for sale," added St-Pierre. In Montreal, single-family homes underwent a more aggressive inventory increase in the fourth quarter of 9.5 per cent, compared to the third quarter, while inventory of standard condominiums rose 5.8 per cent. This figure was even greater in Laval, with increases of 11.8 and 9.5 per cent for single-family houses and standard condominiums, respectively. For the cities of Brossard and Longueuil combined, the inventory increased 8.7 per cent for condominiums and 6.3 per cent for single-family houses. "Furthermore, housing starts in the Montreal CMA moved up 19 per cent for all of 2014, an increase that is not proportional to the current demand," said St-Pierre.
Laval has the wind in its sails
While sales had slowed down in Laval for the past five consecutive quarters, it represents the area that performed the best during the fourth quarter. Sales volumes rose 13.8 per cent and 18 per cent, for condominium and detached bungalows, respectively, compared to the fourth quarter of 2013. Across the metropolitan area surveyed, sales for condominiums and detached bungalows dropped 0.2 and 3.3 per cent, respectively, while standard two-storey homes increased modestly by 1.5 per cent.
Interestingly, high-end properties had a strong quarter, with an impressive 60 per cent increase in sales for single-family houses and 31 per cent for luxury condominiums across the island. Moreover, the appeal for this housing category increased in Laval.
2015 real estate market forecast
According to St-Pierre, property prices in the metropolitan area are expected to increase by 0,6 per cent in 2015, while sales volumes are expected to decrease by 2,4 per cent. While local economic factors such as the austerity measures undertaken by the provincial government put downward pressure on the housing market, the national economic outlook, including the recent fall in oil prices, could play a stimulating role in the market. In addition, buyers will be spoilt for choice given the high inventory levels and will have flexibility around finding the ideal property at a reasonable price.
House Price Survey in the Montreal Area for the Fourth Quarter of 2014
Average home price
| Detached bungalow |
||||
| Average in Q4 of 2014 |
Average in the last quarter |
Average in Q4 of 2013 |
Difference |
|
| Beaconsfield |
$332,500 |
$330,000 |
$325,000 |
2.3% |
| Dorval |
$317,350 |
$313,500 |
$301,000 |
5.4% |
| Pierrefonds |
$297,500 |
$300,500 |
$299,750 |
-0.8% |
| Westmount |
N/A |
N/A |
N/A |
N/A |
| Notre-Dame-de-Grâce/Côte-des-Neiges |
N/A |
N/A |
N/A |
N/A |
| Ville-Marie |
N/A |
N/A |
N/A |
N/A |
| Plateau Mont-Royal |
N/A |
N/A |
N/A |
N/A |
| Rosemont/La Petite-Patrie |
N/A |
N/A |
N/A |
N/A |
| Laval |
$285,000 |
$285,000 |
$283,100 |
0.7% |
| Brossard |
$284,000 |
$283,500 |
$277,000 |
2.5% |
| Longueuil |
$261,500 |
$260,000 |
$251,500 |
4.0% |
| Boucherville |
$303,250 |
$305,500 |
$300,000 |
1.1% |
| Montreal |
$297,300 |
$296,857 |
$291,050 |
2.1% |
| Standard two-storey home |
||||
| Average in Q4 of 2014 |
Average in the last quarter |
Average in Q4 of 2013 |
Difference |
|
| Beaconsfield |
N/A |
N/A |
N/A |
N/A |
| Dorval |
$317,500 |
$324,000 |
$335,000 |
-5.2% |
| Pierrefonds |
$386,500 |
$387,500 |
$390,000 |
-0.9% |
| Westmount |
N/A |
N/A |
N/A |
N/A |
| Notre-Dame-de-Grâce/Côte-des-Neiges |
$550,500 |
$546,000 |
$540,000 |
1.9% |
| Ville-Marie |
N/A |
N/A |
N/A |
N/A |
| Plateau Mont-Royal |
N/A |
N/A |
N/A |
N/A |
| Rosemont/La Petite-Patrie |
N/A |
N/A |
N/A |
N/A |
| Laval |
$368,000 |
$361,250 |
$355,000 |
3.7% |
| Brossard |
$406,000 |
$405,250 |
$402,000 |
1.0% |
| Longueuil |
$365,250 |
$364,500 |
$362,000 |
0.9% |
| Boucherville |
$422,500 |
$437,500 |
$428,000 |
-1.3% |
| Montreal |
$402,321 |
$403,714 |
$401,714 |
0.2% |
| Standard condominium |
||||
| Average in Q4 of 2014 |
Average in the last quarter |
Average in Q4 of 2013 |
Difference |
|
| Beaconsfield |
N/A |
N/A |
N/A |
N/A |
| Dorval |
N/A |
N/A |
N/A |
N/A |
| Pierrefonds |
$223,000 |
$222,500 |
$205,000 |
8.8% |
| Westmount |
N/A |
N/A |
N/A |
N/A |
| Notre-Dame-de-Grâce/Côte-des-Neiges |
$254,000 |
$255,000 |
$259,000 |
-1.9% |
| Ville-Marie |
$320,000 |
$312,500 |
$315,000 |
1.6% |
| Plateau Mont-Royal |
$318,000 |
$318,000 |
$325,000 |
-2.2% |
| Rosemont/La Petite-Patrie |
$279,850 |
$280,000 |
$270,000 |
3.6% |
| Laval |
$197,000 |
$198,000 |
$199,900 |
-1.5% |
| Brossard |
$195,000 |
$194,000 |
$195,000 |
0.0% |
| Longueuil |
$182,500 |
$180,000 |
$174,000 |
4.9% |
| Boucherville |
$208,500 |
$209,000 |
$211,000 |
-1.2% |
| Montreal |
$241,983 |
$241,000 |
$239,322 |
1.1% |
About the Royal LePage House Price Survey
The Royal LePage House Price Survey is the largest, most comprehensive study of its kind in Canada, with information on seven types of housing in over 250 neighbourhoods from coast to coast. This release references an abbreviated version of the survey which highlights house price trends for the three most common types of housing in Canada in 90 communities across the country. A complete database of past and present surveys is available on the Royal LePage website at www.royallepage.ca. Current figures will be updated following the complete tabulation of the data for the fourth quarter of 2014. A printable version of the fourth quarter 2014 survey will be available online on February 9, 2015. Housing values in the Royal LePage House Price Survey are Royal LePage opinions of fair market value in each location, based on local data and market knowledge provided by Royal LePage residential real estate experts.
About Royal LePage
Serving Canadians since 1913, Royal LePage is the country's leading provider of services to real estate brokerages, with a network of over 16,000 real estate professionals in more than 600 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, dedicated to supporting women's and children's shelters and educational programs aimed at ending domestic violence. Royal LePage is a Brookfield Real Estate Services Inc. company, a TSX-listed corporation trading under the symbolTSX:BRE.
For more information visit: www.royallepage.ca.
SOURCE Royal LePage Limited
Roseline Joyal-Guillot, Manager, Kaiser Lachance Communications, 514 758-9810, [email protected]
Share this article