Sales of expensive homes in Montreal have skyrocketed – these could be the reasons why
As rent prices continue to climb in Montreal, so does the number of ultra-expensive homes purchased by the city’s wealthiest buyers. A new report analyzing the luxury real estate market in 2021 shows a significant increase in Montreal homes and condos selling for $1 million or more.
Engel & Volkers’ 2021 Year-End Report on the Canadian Luxury Real Estate Market focuses on “Canada’s Most In-Demand Cities,” which it identifies as Halifax, Ottawa, Toronto, Vancouver and Montreal.
According to the report, the number of units sold in Montreal priced between $1 million and $3.9 million jumped 150% compared to 2019. Sales of condos in the same price range rose 87% year-over-year in December, according to Engel & Volkers in a press release.
For single-family homes priced at $4 million and above, Engel & Volkers says total home sales “nearly doubled from a year earlier,” increasing 75% since 2020.
Why are there more expensive houses for sale?
Engel & Volkers attributes soaring luxury real estate prices in Canada to a combination of low interest rates, limited supply and increased demand from buyers who are “taking advantage of their current homes to trade” .
In Montreal, specifically, “the number of high-end homes in prime neighborhoods is limited” — which has only been exacerbated by the pandemic.
“Historically, supply has come to the Montreal market from downsizing older people and providing housing for young families and first-time buyers. The pandemic has created a behavioral shift, where aging seniors do not want to downsize or move into assisted living facilities, especially in light of the situation in Montreal’s long-term care homes during the pandemic,” says Engel & Volkers.
Real estate broker Patrice Groleau says that even though the borders are closed, there is still constant international interest in the Montreal real estate market which is contributing to demand, especially from French-speaking buyers, notably those from Belgium, France, Switzerland, Morocco, Tunisia and Ivory. Rating.
“These buyers are interested in Montreal and visit properties from a distance, with some even buying sites without seeing them,” he said in the report. “Price gains for high-end and conventional real estate will continue, particularly once immigration returns to pre-pandemic levels.”
The Bank of Canada plans to keep interest rates low until mid-2022. Engel & Volkers predicts that “if supply does not recover, prices will continue to climb in 2022”.
Engel & Volkers also estimates that more than 80% of luxury home sellers in Canada in 2022 will be Gen Xers and Millennials.
The cover image of this article was used for illustrative purposes only.