Bidding war on Montreal real estate market

The price of houses is rising in Montreal and it is not uncommon to see bidding wars.

The prices on houses have increased over the last 12 months throughout Quebec. But this increase is even more noticeable in the Greater Montréal area.

To increase can be explained by several factors, including economic growth, the lowest unemployment rate and the flow of foreign buyers, which followed after the introduction of taxes in Toronto and Vancouver.

“Historically, the most prominent demographic group of buyers in Quebec was the Americans, followed by the French and Chinese. In the past year, the Chinese have outperformed the French.” said Dominic St-Pierre, Senior Director at Royal LePage, Quebec.

Bidding war

This flow of foreign investors blew up the price of some Montreal buildings.

“Currently, we see multiple offers on the market. Every time we are in a sellers’ market, it creates this kind of situation.” said Mr. St-Pierre.

According to a recent report, the average price for a single-family home in Greater Montréal area is $ 336,000, an increase of 6% over last year. On the other hand, despite the rise, Montreal remains very affordable. For example, the average price of a house in Toronto is $ 782,000.

“Montreal is probably one of the big cities in the world where the real estate market is the most affordable. There is no real estate bubble, where as in Toronto is double and in Vancouver is triple. The same type of property in Vancouver may cost millions of dollars more. Yes, there is still room for an increase (in Montreal). ”

Source: 985FM Montréal