How real estate is shifting toward a buyer’s market in Montreal.
Today I’m going to share my greater Montreal third-quarter real estate market update. Things have changed a lot, so I want you to stay informed!
During the third quarter of 2022, we had 8,273 real estate transactions, which is a decrease of 23% from the third quarter of 2021. We also had 16,225 new listings, which is an increase of 15% from the third quarter of 2021. We currently have 13,838 active listings, which is an increase of 35% when compared to the third quarter of 2021.
Now let’s get into what’s a bit more important for you as a homeowner, which is pricing. The median sales price of a single-family home in the greater Montreal area for the third quarter of 2022 was $536,500, which is an increase of 7% compared to the third quarter of 2021. The median selling price of a condo was $385,000, which is an increase of 5%. The median sales price of plexes is $721,500, which is an increase ofMarch of this year versus September of this year 6%.
I truly believe the news isn’t too bad. The pricing seems to be holding, so when the real estate board publishes this information, it seems to be still pretty positive. The information seems to be indicating that we are entering into a correcting market.
Now, I do want to share with you an analysis that I’ve done myself, and I want to compare what was happening in March versus September of this year.
If we go back to March, the average five-year fixed mortgage had about a 3.5% interest rate. We had two months of inventory, which means that if we stopped taking any new listings, it would only take us two months to sell everything on the market. That indicates a seller’s market.
If you compare that to what happened in September of this year, things have changed a lot. We are now up to seven months of inventory, and we’re listing three times more properties than we’re selling. From what I’m seeing, that’s creating ongoing inventory, meaning that there will be more properties up for sale and fewer buyers on the market. A big reason for that is the rise in interest rates, which has cut borrowing capacity by 20%. Someone that was able to borrow about $700,000 in March can only borrow $550,000 now.
I predict that we’re headed toward a very strong buyer’s market. If you are on the fence about selling, you should do so now. If you want to talk about your situation, call or text me directly at (514) 917-6284, or you can email me as well. My team and I will be here to help guide you through this changing market.