Montreal home sales up in March as prices rise across all housing types

The housing market in the Montreal area saw a significant uptick in March, according to data from the Quebec Professional Association of Real Estate Brokers. Home sales surged by 14.2 percent compared to the same period last year, reaching a total of 4,488 transactions, marking a notable increase from the 3,930 sales recorded in March 2023.

Despite this increase, the level of activity in the housing market remains below the historical average for this time of year. This suggests that while there is movement in the market, it may not be as robust as expected during the spring season.

One notable trend in the market is the steady rise in median prices across various housing types. The median price for a single-family home saw a significant increase of 5.6 percent, reaching $565,000 last month. Similarly, the median price for plexes rose by 5.5 percent to $750,000, and condominiums saw a 4.9 percent increase with a median price of $400,000.

Despite the increase in sales and prices, affordability remains a concern for many prospective buyers. The continuous rise in housing prices, particularly for single-family homes and condominiums, could deter some buyers from entering the market or push them towards more affordable options.

Another factor impacting the housing market is the availability of listings. Active listings for March saw a notable jump of 17.1 percent compared to the previous year, totaling 18,707 listings. Additionally, new listings increased by 10.4 percent, reaching 6,973. While an increase in listings might suggest more options for buyers, it could also indicate a growing inventory that may put downward pressure on prices in the future.

The surge in housing market activity comes amidst broader concerns about affordability and the cost of living. With prices on the rise and the cost of essentials such as groceries, utilities, and transportation also increasing, prospective homebuyers are facing challenges in balancing their budgets.

Overall, while the Montreal housing market saw a surge in activity during March, concerns about affordability and the overall cost of living continue to weigh on buyers. The market's trajectory in the coming months will depend on various factors, including economic conditions, government policies, and consumer sentiment.